Judges OK sale of railroad in Canada disaster

AP News
Posted: Jan 23, 2014 3:08 PM

PORTLAND, Maine (AP) — Judges in the U.S. and in Canada have approved the sale of a Maine-based railroad that went bankrupt after one of its oil trains derailed, killing 47 people.

Chapter 11 trustee Bob Keach said New York-based Fortress Investment Group hopes to close on the purchase of Montreal, Maine and Atlantic Railways by March 31. A Fortress subsidiary bid $14.25 million for the railroad. The total value grew to $15.85 million when Fortress forfeited some locomotives, which will be sold separately.

Court proceedings were held Thursday in Quebec and Bangor, Maine.

Montreal, Maine and Atlantic owns about 500 miles of track in Maine, Vermont and Canada. It went bankrupt after an unmanned train with 72 oil tankers rolled into Lac Megantic, Quebec, and derailed, causing a deadly explosion and fire.