Canada allows MMA to run through Oct. 1
The Montreal, Maine and Atlantic Railway and its Canadian subsidiary will be allowed to operate through Oct. 1, the Canadian Transportation Agency said, citing evidence that the firms demonstrated they had adequate third-party insurance.
According to Reuters, the agency’s decision reverses an Aug. 13 order that would have halted the railroad’s operations as early as next week. But MMA still must show it has the funds to pay the self-insured portion of its operations or the regulator will suspend its operations from Aug. 23, the news service reported.
In response to the July 6 accident in the Quebec town of Lac-Megantic that killed 47 people, MMA, which operates rail lines in Quebec and Maine, filed for bankruptcy protection in Canada and the United States last week. It said in a court filing that its insurance covered liabilities up to $24.2 million, while cleanup costs could exceed $193 million. The rail company also faces a series of class-action lawsuits on behalf of the victims, as well as a notice of claim from a firm that is unable to ship from its Lac-Megantic production facilities.
Most Recent
Most Recent
Comments