Railroad in explosion has its Canadian assets sold

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Associated Press

Posted on June 30, 2014 at 12:00 PM

Updated Monday, Jun 30 at 1:00 PM

PORTLAND, Maine (AP) — The $15.85 million sale of a bankrupt railroad responsible for a deadly oil train derailment in Quebec is now complete with transfer of the company's Canadian assets to new ownership.

More than a month ago, parties completed the sale of U.S. assets of Montreal, Maine, and Atlantic to a subsidiary of New York-based Fortress Investment Group. But the Canadian closing was delayed until regulators issued a "certificate of fitness."

Bankruptcy trustee Bob Keach said the Canadian sale was completed Monday.

The derailment last summer in Lac-Megantic claimed 47 lives, making it the worst railway accident in Canada in nearly 150 years. It led to calls for making oil trains safer across North America.

The railroad's new name is Central Maine and Quebec Railway.

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