Delay in approval of settlement fund for victims of Lac-Megantic rail disaster

PORTLAND, Maine – Final approval of a $338 million US settlement for victims of the 2013 train derailment in Lac-Megantic, Que. has been delayed.

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The delay is to provide time for the only party that’s opposed to the fund to either join in the settlement or negotiate terms to withdraw its objection.

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A U.S. bankruptcy judge on Thursday ordered the parties to reconvene Oct. 5, and the U.S. bankruptcy trustee is confident the settlement will be confirmed.

The settlement was the issue of negotiations with about two dozen companies.

The only party with potential liability that declined to participate is Canadian Pacific, which contends it wasn’t treated fairly under the deal.

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At a court hearing in Canada earlier this year, a lawyer for CP said the disaster did not involve the company’s tracks, rail cars, products or employees.