On January 21, 2014, Montreal, Maine and Atlantic (MMA) Railway was sold at auction to a subsidiary of a New York City-based investment management company. On August 8, 2013, the train company that killed 47 people and leveled 30 buildings in the tiny town of Lac Megantic Quebec, filed for Chapter 11 bankruptcy.
On July 6, 2013, the unattended train comprised of 72 oil bearing tanker cars derailed and exploded decimating the town and ruining the lives of many in the small community.
Railroad Acquisitions LLC, a subsidiary of Fortress Investment Group, won the closed-door bidding for MMA Railway with a bid of just over $14 million.
More than a dozen companies expressed interest in the bankrupt company, which owns about 500 miles of track in Maine, Vermont and in Canada.
While the sale may keep the rail line in operation, it may also help to repay creditors and victims. The $25 million in insurance payouts was grossly inadequate and does not even cover the cost of the cleanup not to mention lawsuits associated with wrongful death, personal injury, property damage, fire suppression and environmental impacts.
© 2014, Richard Matthews. All rights reserved.
Massive Oil Spill from Train Derailment in the Town of Lac Megantic
The Dangers of Transporting Fossil Fuels
MMA’s Bankruptcy Protection is Unconscionable
Video – Train Carrying Oil Derails Illustrating the Dangers of Transporting Fossil Fuels
Transport Canada’s New Train Safety Rules for Transporting Fossil Fuels
Oil Bearing Train Derails and Explodes in New Brunswick
Train Derails Spilling Coal into a BC Waterway
Train Carrying Fossil Fuels Derails Causing an Explosion and Fire in Alberta
Train Derails Spilling Oil in Saskatchewan
Stop Old Trains from Transporting Oil
New Pipeline Project Partners Fracking with the Tar Sands