Eight suitors express interest in MM&A auction
Robert Keach, the court-appointed trustee for the bankrupt Montreal, Maine and Atlantic Railway Co., says that eight entities have expressed interest in bidding on MM&A’s U.S. and Canadian assets.
The Maine Public Broadcasting Network reported that Keach hopes the auction process will start next month and expects a sale to close by the end of the year.
Keach told the news network that eight “prominent entities” in the financial and railroad industries are interested in the railroad’s assets. Keach said the railroad has enlisted the New York-based Gordian Group to speak with the interested parties about the auction and solicit by mid-November a stalking-horse bid that would set a starting point for other bidders.
Keach declined to say how much he thinks the railroad might garner in a sale but dismissed the estimate of $50 million to $100 million included in bankruptcy documents as a measure of just the company’s physical assets. Keach said he is not concerned that the bankruptcy proceedings will deplete the funds that will be available to victims of an oil tanker crash in Lac-Megantic, Quebec, that killed 47 people in July.
Correction: A previous version of this story incorrectly spelled the title of the Gordian Group and misidentified its location as South Carolina.
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