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Tuesday, August 27, 2013

Railway In Quebec Disaster Allowed To Operate Till Oct. 1

Per www.globalinsolvency.com:


Mon., August 26, 2013
 
The rail company whose oil tanker train blew up in a Quebec town last month, killing 47 people, will be allowed to continue operating through Oct. 1 after providing insurance documentation demanded by Canadian authorities, Reuters reported. The Canadian Transportation Agency (CTA) said on Friday it would let Montreal, Maine and Atlantic Railway (MMA) and its Canadian subsidiary keep trains moving for now. Earlier this month it had ordered MMA to cease operations, saying the railway lacked adequate insurance. On July 6, a runaway MMA train hauling tankers of crude oil derailed in the center of the little Quebec town of Lac-Megantic, and exploded in giant fireballs in what was North America's deadliest rail accident in two decades. MMA, which operates rail lines in Quebec and Maine, filed for bankruptcy protection in Canada and the United States earlier this month. It said in a court filing that its insurance covered liabilities up to C$25 million, while clean-up costs after the crash could exceed C$200 million.

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