Bankrupt railroad in Quebec derailment sold

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Associated Press

Posted on May 16, 2014 at 12:01 AM

Updated Friday, May 16 at 12:03 AM

PORTLAND, Maine (AP) — The sale of the Maine-based railroad blamed for a deadly oil train derailment in Quebec has been completed 10 months after the disaster that claimed 47 lives.

Chapter 11 trustee Robert Keach said the parties closed Thursday on the $15.85 million sale of bankrupt Montreal, Maine and Atlantic Railway. A separate, parallel Canadian proceeding will be completed at a later date.

Proceeds from the sale will help pay off creditors.

The railway buyer, a subsidiary of New York-based Fortress Investment Group, is changing the railroad's name to Central Maine and Quebec Railway. It has no plans to resume oil train shipments.

The derailment last summer in Lac-Megantic was the worst railway accident in Canada in nearly 150 years. It led to calls for making oil trains safer across North America.

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