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Quebec judge grants MMA railroad creditor protection
MONTREAL – The embattled railroad at the centre of the deadly Lac-Megantic train derailment has been granted creditor protection in Canada.
A Quebec Superior Court justice handed down the ruling this morning after a request by Montreal, Maine & Atlantic Canada Co.
The company filed the documents on Wednesday and was seeking relief from its creditors under the Companies’ Creditors Arrangement Act.
The CCAA allows companies protection while they work out ways of avoiding bankruptcy.
Yesterday’s court filing came on the same day that the company’s sister firm, the Montreal, Maine & Atlantic Railway, initiated proceedings for Chapter 11 bankruptcy protection in a U.S. court.
The filings come as the company faces lawsuits and enormous cleanup costs following the fiery July 6 crash that wiped out the downtown core of Lac-Megantic, set off several explosions and killed 47 people.
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