Sale of MMA railway expected next week
The sale of Montreal, Maine & Atlantic Railway, the bankrupt railway company involved in last year’s deadly train derailment in a small Quebec town, is expected to close next week.
The Portland Press Herald reported the sale of MMA’s assets in the United States to a subsidiary of the New York-based Fortress Investment Group will close on May 15. The investment group will operate the railway under the name Central Maine and Quebec Railway. The Canadian side of MMA’s operations will continue until the company receives the necessary regulatory approvals, though there continues to be no traffic across international borders.
MMA — which operates approximately 500 miles of railroad between Maine and Montreal — filed for bankruptcy last August, a month after one of its trains derailed in the Quebec town of Lac-Mégantic, killing 47 people and destroying a majority of the town’s downtown area.
The closing of the sales agreement, signed last December, was delayed from its original closing date of March 14 because of a delay with certification in Canada.
Central Maine and Quebec Railway has filed papers with the Canadian Transportation Agency to purchase MMA’s Canadian assets, which is expected to close within five days of receiving the necessary regulatory approvals.
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