Monday, October 14, 2013

MM&A Sale Could be Completed in 2013

(via Newswire)

BANGOR, Maine – A bankruptcy court sale of the beleaguered Montreal, Maine & Atlantic Railway could be completed in December, The Canadian Press reports. The sale would hinge on the establishment of a process to award compensation to victims of the July 6 derailment in Lac-M├ęgantic, Quebec that killed 47 people and damaged much of the city's downtown.

Court filings indicate interest from eight potential buyers as of Friday, the report says. Seven had signed non-disclosure agreements to receive confidential data.

Under a proposed sale schedule, expressions of interest would be due to the court on Oct. 31 and a lead bidder would be chosen Nov. 15 to start the process. A formal auction would be held Dec. 13 with court approval in Maine and Quebec on Dec. 16.

Interested buyers would be able to bid on the road's entire assets or just those in the Canada and U.S., but must be prepared to continue rail service.

The railroad's total assets are estimated between $68 and $118 million dollars. The railroad's $25 million insurance policy would also supplement the sale price for the victims' fund.

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