MM&A hoping for buyer by year's end
The trustee for the Montreal, Maine and Atlantic Railway says the bankrupt railroad company could be sold as early as the end of this year.
The Associated Press reported the sale process for the railroad has started, which is needed to pay creditors and compensate victims of a July 6 oil tanker crash in Lac-Megantic, Quebec, that killed 47 people. Robert Keach, the railroad’s trustee, said several potential buyers have come forward. He estimated the railroad is worth between $50 million and $100 million but did not say how much the company might sell for.
The proceeds of that sale would be used to pay for remediation and potentially pay damages to the families of crash victims. MM&A had a $25 million insurance policy at the time of the crash, but damages are expected to be much higher.
The AP reported Keach also submitted a proposal this week in U.S. Bankruptcy Court for a loan that would help the company continue to operate through its bankruptcy proceedings.
Should another company seek to buy all of MM&A’s 512 miles of railroad in the United States and Canada, the sale would need approval by bankruptcy officials in both countries.
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