(via Trains.com 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-Mégantic, 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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