Railroad Company Involved in Deadly Explosion Seeking Bankruptcy Protection

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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.

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