Friday, May 22nd27.6°C
26383

Sale of bankrupt railroad's Canadian assets completed; focus turns to settlement fund

PORTLAND, Maine - With completion of the sale of the bankrupt railroad responsible for an oil train derailment that killed 47 people, attention now turns to creation of a settlement fund with hundreds of millions of dollars to compensate victims.

Bankruptcy attorney Robert Keach said he's working to establish the settlement fund while sorting through the numerous claims while civil lawsuits in the U.S. are on hold and while a Canadian class-action awaits certification.

"We're in negotiations with people who have liabilities to make a contribution to a significant nine-figure fund. Those negotiations continue," Keach said Monday.

The fiery derailment nearly a year ago in Lac-Megantic was the worst railway accident in Canada in nearly 150 years and led to calls for making oil trains safer across North America.

The $15.85 million sale of the bankrupt railroad — the Maine-based Montreal, Maine and Atlantic — was completed Monday with transfer of the company's Canadian assets to new ownership, officials said.

More than a month ago, parties completed the sale of the railroad's U.S. assets to a subsidiary of New York-based Fortress Investment Group, which has renamed it the Central Maine and Quebec Railway. But the Canadian closing was delayed until regulators issued a "certificate of fitness."

The certificate was issued last week and the Canadian sale was completed Monday with the signing of legal documents and wire transfers of money, Keach said.

Most of the money from the sale will go to creditors.

The settlement fund, however, would be used to pay out claims to victims. The total environmental cleanup alone in Lac Megantic could end up costing between $200 million and $500 million based on early estimates.

The Canadian Press


Read more Business News

26416


Recent Trending




Today's Market
S&P TSX15200.76-2.85
S&P CDNX703.48+2.97
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8142-0.0053
Gold1205.70+1.30
Oil57.45-1.98
Lumber273.30+3.70
Natural Gas2.885-0.064

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.48+0.03
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.09+0.01
Russel Metals25.79-0.03
Copper Mountain Mining1.38-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



26396

FEATURED Property
2251189905 GRAHAM RD
3 bedrooms 4 baths
$574,880
more details
image2image2image2
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_





26112


Member of BC Press Council


25334