PORTLAND, Maine (AP) – Judges in the U.S. and in Canada have approved the sale of a Maine-based railroad that went bankrupt after a fiery oil train derailment last summer in Canada.
Chapter 11 trustee Bob Keach said New York-based Fortress Investment Group hopes to close on the purchase of Montreal, Maine and Atlantic Railways by March 31. A Fortress subsidiary bid $14.25 million for the railroad. The total value grew to $15.85 million when Fortress forfeited some locomotives, which will be sold separately.
Dual proceedings were held Thursday in Quebec and in Bangor, Maine.
Montreal, Maine and Atlantic owns about 500 miles of track in Maine, Vermont and Canada. It went bankrupt after a train with 72 oil tankers derailed, causing an explosion and fire that killed 47 people in Lac Megantic, Quebec.