January 22, 2014 4:55 pm
Updated: July 4, 2014 3:54 pm

$15.9M winning bid for railway in fiery Lac-Megantic derailment

The transportation subsidiary of East Coast conglomerate Irving is keeping its options open about a possible acquisition of the railway at the centre of last month's deadly Lac-Megantic train crash that killed 47 people.

THE CANADIAN PRESS/Graham Hughes
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PORTLAND, Maine – The Chapter 11 trustee said the winning bid for a Maine-based railroad that went bankrupt after a fiery oil train derailment in Lac-Megantic, Que., amounted to nearly $15.9 million.

Robert Keach filed documents Wednesday outlining details a day before the winning bid goes before a U.S. bankruptcy judge in Maine and a Superior Court judge in Quebec.

Winning bidder Railroad Acquisitions LLC, a subsidiary of Fortress Investment Group, also served as the “stalking horse” bidder, setting a minimum bid for Montreal, Maine and Atlantic Railways.

Eastern Maine Railway and Springfield Terminal Railway bid on the Maine track.

Another company bid for a smaller portion of track.

Proceeds from the company’s sale will be used to repay creditors and victims, supplementing $25 million in insurance payouts available following the disaster.

© 2014 The Canadian Press

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