Friday, August 29th17.8°C
22817
21900

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

21623


Recent Trending




Today's Market
S&P TSX15617.51+59.34
S&P CDNX1020.13-2.24
DJIA17070.31-9.26
Nasdaq4572.05+14.355
S&P 5002000.24+3.50
CDN Dollar0.9201-0.0006
Gold1281.70-2.1001
Oil95.63+1.08
Lumber349.50+2.50
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.18-0.01
Cantex0.08+0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.07-0.005
Russel Metals36.52+0.13
Copper Mountain Mining2.910.00
Colorado Resources0.180.00
ReliaBrand Inc0.099-0.016
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.23-0.02

 



22315

FEATURED Property
19874095945 Hwy 33
$279,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...

_



22885




Member of BC Press Council


22885