Railroad Company Involved in Deadly Explosion Seeking Bankruptcy Protection
by Joel R. Glucksman on August 20, 2013
Railroad company Montreal, Maine & Atlantic Ltd., which has recently been in the
media spotlight for causing a deadly explosion in Quebec, is seeking bankruptcy
protection under Chapter 11 in both the United States and Canada.
Earlier in July, a parked train carrying 72 tankers full of crude oil began rolling
downtown in the small Quebec town of Lac-Megantic and eventually derailed, causing a
fire and explosion that killed 47 people. Since the deadly explosion, the company has
experienced significant service delays and disruptions that has indebted it to more than
200 creditors, the company said in its bankruptcy filing.
In addition, the railroad company, which is based in Maine, said that costly lawsuits and
clean-up costs associated with the fatal explosion have only exacerbated its financial
difficulties. The company also noted that in the one month following the disaster, its
monthly revenue for its Canadian and U.S. units fell to $1 million.