N.Y. investment firm wins bid for MM&A assets
A subsidiary of the New York-based Fortress Investment Group has won a bid for the assets of the Montreal, Maine & Atlantic Railway, according to the trade publication Atlantic Northeast Rails & Ports.
The publication reported the auction took less than 40 minutes. Fortress subsidiary Railroad Acquisitions Holdings LLC had set the stalking horse bid price of $14.25 million for the railroad's assets, though the final bid price was not immediately revealed. MM&A bankruptcy trustee Robert Keach previously told The Associated Press that the minimum bid for the railroad was $15.7 million.
The AP reported the highest bidder would not necessarily win, as Keach had leeway to determine what was in the best interest of the public and creditors. The winner of Tuesday's auction won't be made public until Thursday, when the U.S. District Court in Bangor and the Superior Court of Quebec in Sherbrook plan to hold simultaneous proceedings starting at 10 a.m.
The Bangor Daily News reported J.D. Irving, which owns Maine Northern Railway and Eastern Maine Railway, partnered with Springfield Terminal Railway Co. to bid on the Maine portions of MM&A’s assets.
“In the end, the trustee went forward with a single buyer of the entire MM&A railway line [Maine, Quebec and Vermont track],” Wayne Power, vice president of J.D. Irving’s transportation and logistics division, told the newspaper. “We look forward to working with Fortress Investment Group of New York as they assume operation of the MM&A railway.”
MM&A railway filed for bankruptcy protection in the United States and Canada last August following the July 6 train derailment and explosion in Lac Megantic, Quebec, that killed 47 people.
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