This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rail Company to Emerge From Bankruptcy With New Name

PORTLAND, Maine -- The Maine-based railroad responsible for a fiery derailment that killed 47 people in Quebec in July is getting a new name.

The company buying the railroad plans to change the name of Montreal, Maine and Atlantic Railway to Central Maine and Quebec Railway.

Railroad Acquisition Holdings, a subsidiary of New York-based Fortress Investment Group, (FIG - Get Report) had the winning bid for the bankrupt railroad, which owns about 500 miles of track in Maine, Vermont and Canada. The deal is on course to close by the end of next month, said Chapter 11 trustee Robert Keach.

Montreal, Maine and Atlantic Railway filed for bankruptcy after an unattended train with 72 oil tankers derailed and exploded in Lac Megantic, Quebec, in July, destroying 40 buildings, including a busy bar where many of the victims perished. The railroad blamed a worker for failing to set enough brakes, which allowed the train to begin rolling toward the lakeside town of 6,000.

Most of the $15.85 million in proceeds from the railroad's sale will be used to repay creditors and administration costs. All remaining claims, including wrongful death cases, property damage and environmental cleanup will likely draw from a settlement fund to be set up by defendants, Keach has said.

Central Maine and Quebec Railway will be unencumbered by those problems.

Fortress said in a filing to the Surface Transportation Board this month that it plans to continue operating the line and hopes to recapture business that was lost because of derailment-related disruptions. There are no plans to try to bring back oil shipments, the company said.

It's common for railroad names to change after bankruptcy. The same railroad was known as the Bangor and Aroostook Railroad before a previous bankruptcy, which ended with the rail company's 2003 purchase by Chicago-based Rail World.

Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FIG $7.76 -0.26%
AAPL $131.78 -0.20%
FB $80.14 -0.50%
GOOG $539.78 -0.00%
TSLA $251.45 1.62%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs