US firm buys bankrupt rail carrier after Canada accident - report

22 January 2014 19:07  [Source: ICIS news]

TORONTO (ICIS)--The assets of Montreal, Maine and Atlantic (MMA), the bankrupt rail carrier involved in last year’s crude oil train catastrophe in Quebec province, has been sold to a US investment group, Canadian state media group CBC reported on Wednesday.

However, the auction sale has yet to be approved by a court.

MM&A filed for bankruptcy protection following the derailment and explosion of a 72-oil railcar train, which destroyed the centre of the town of Lac-Megantic in eastern Quebec last July, killing 47 people.

Neither MM&A nor the buyer, an affiliate of US-based Fortress Investment, could be reached for immediate additional comment.

MM&A has 510 miles of rail track in eastern Canada, Maine and Vermont, and it employs a staff of 170 people, according to information on its website. Canada recently extended MM&A's operating license to 1 February.

By: Stefan Baumgarten
+1 713 525 2653

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