MM&A gets $3M lifeline from Camden National
The Montreal, Maine and Atlantic Railway will continue operating through its bankruptcy after a federal judge approved a $3 million loan from Camden National Bank.
The Bangor Daily News reported that a U.S. Bankruptcy Court judge approved the loan Tuesday, which court-appointed trustees for the railroad said will allow it to continue operating with two-man crews. The company’s use of one-man crews came under scrutiny after a July 6 oil tanker crash in Lac-Megantic, Quebec, that killed 47 people.
Robert Keach, the trustee for the railroad, wrote to the court that the company would be broke by the end of October if not for the loan. Keach said that shippers’ uncertainty over the railroad’s assets is resulting in a substantial loss of business for MM&A’s cargo operations.
Keach said that the railroad’s pending bankruptcy auction has received interest from eight entities and that the company is marketing its U.S. and Canadian assets together for the sale.
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