08 August 2013 16:20 [Source: ICIS news]
TORONTO (ICIS)--The rail carrier involved in July’s rail catastrophe in Quebec has filed for creditor and bankruptcy protection in both Canada and the US as its assets and insurance will not cover claims from the accident, it said on Thursday.
The derailment and explosion on 6 July of an unattended train carrying crude oil destroyed the centre of the town of Lac Megantic in eastern Quebec, killing 47 people.
The carrier, Montreal, Maine & Atlantic (MM&A), said that the claims against it from the accident have exceeded its assets, including possible insurance recoveries, prompting it to file for protection.
According to Canada’s state media group Radio-Canada, the company has only $25m (€19m) in insurance coverage. The accident's clean-up alone is estimated to cost more than $200m, Radio-Canada said, citing documents from MM&A's filing with a Quebec court.
In a statement on its website, MM&A added that despite the filings for protection it would continue operating "essential rail services" in Quebec, Maine and Vermont. Officials at MM&A’s offices in Maine were not immediately available for additional comment.
($1 = €0.75)
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