Troubled railroad at center of Quebec derailment disaster could be sold by year's end
9/5/2013PORTLAND, Maine — The process of selling the bankrupt railroad whose runaway train killed 47 people in Quebec is underway and the company’s trustee hopes to complete a deal by year’s end.
Montreal, Maine & Atlantic Railway has made no secret that the railroad’s sale will be necessary to repay creditors and victims following the July 6 disaster in Lac-Megantic, Quebec.
Railroad trustee Robert Keach said today that he’s already been approached by “several” potential buyers.
Any proceeds from the sale of the Hermon-based company would be used to repay creditors and victims, supplementing $25 million in insurance payouts available for wrongful death, personal injury, property damage, fire suppression and environmental cleanup.
Critics have said the insurance policy is inadequate and won’t even cover the cleanup costs.