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$460 million settlement for victims of Lac-Mégantic disaster fully funded

WATCH ABOVE: Proceedings in the Lac-Mégantic settlement.

MONTREAL – Officials handling bankruptcy proceedings tied to the Lac-Mégantic rail disaster said a $460 million settlement is fully funded and cheques for the victim’s families should start flowing in the new year.

About $114 million will be transferred this week to a trust for the holders of wrongful death claims.

READ MORE: Quebec judge OKs Lac-Mégantic settlement fund

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Families will soon receive notice regarding upcoming distributions to be made to lawyers for the benefit of the families.

The train owned by Montreal Maine and Atlantic Railway was carrying crude oil from the United States when derailed and exploded in Lac-Mégantic in July 2013, killing 47 people.

MMA did not have enough insurance to cover the hundreds of millions of dollars in claims against it and filed for bankruptcy in the United States and Canada.

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READ MORE: Canadian Pacific ready to drop appeal in Lac-Megantic case for legal protection

Roughly 25 companies accused of responsibility in the tragedy agreed to pay into the fund for victims and creditors.

Distribution of approximately $317 million to the holders of personal injury, moral damage, and economic and property claims, as well as to various levels of government, will also proceed in the new year.

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