Winning bid for railway in fiery Lac-Megantic derailment was $15.9 million - InfoNews

Current Conditions

Mostly Cloudy
6.6°C

Winning bid for railway in fiery Lac-Megantic derailment was $15.9 million

January 22, 2014 - 12:46 PM

PORTLAND, Maine - The Chapter 11 trustee says the winning bid for a Maine-based railroad that went bankrupt after a fiery oil train derailment in Lac-Megantic, Que., amounted to nearly $15.9 million.

Robert Keach filed documents Wednesday outlining details a day before the winning bid goes before a U.S. bankruptcy judge in Maine and a Superior Court judge in Quebec.

Winning bidder Railroad Acquisitions LLC, a subsidiary of Fortress Investment Group, also served as the "stalking horse" bidder, setting a minimum bid for Montreal, Maine and Atlantic Railways. Eastern Maine Railway and Springfield Terminal Railway bid on the Maine track. Another company bid for a smaller portion of track.

Proceeds from the company's sale will be used to repay creditors and victims, supplementing $25 million in insurance payouts available following the disaster.

News from © The Associated Press, 2014
The Associated Press

  • Popular penticton News
  • Comments
View Site in: Desktop | Mobile