Maine railroad in deadly Canada derailment sold

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Associated Press

Posted on January 22, 2014 at 3:00 AM

Updated Wednesday, Jan 22 at 3:02 AM

PORTLAND, Maine (AP) — A Maine-based railroad that went bankrupt after a fiery oil train derailment killed 47 people last summer in Canada has been sold in a closed-door auction.

One of the losing bidders in Tuesday's auction says a subsidiary of Fortress Investment Group won the closed-door bidding for Montreal, Maine and Atlantic Railway.

Chapter 11 trustee Robert Keach has declined to comment on the proceedings but has said the goal is to recoup losses while keeping the railroad in operation. A Fortress spokesman hasn't returned a call seeking comment.

The winning bid will be considered by judges in Maine and Canada on Thursday. Railroad Acquisitions LLC had submitted a bid of $14.25 million.

An MMA train with 72 oil tankers left unattended in July rolled into downtown Lac-Megantic (lak may-gahn-TEEK'), Quebec, where it derailed and exploded.

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