Maine railroad in deadly Canada derailment sold

Published on NewsOK Modified: January 21, 2014 at 8:04 pm •  Published: January 21, 2014
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PORTLAND, Maine (AP) — A railroad that went bankrupt after a fiery oil train derailment killed 47 people last summer in Canada was sold at auction Tuesday to a subsidiary of a New York City-based investment management company.

Railroad Acquisitions LLC, a subsidiary of Fortress Investment Group, won the closed-door bidding for Montreal, Maine and Atlantic Railway, according to one of the losing bidders. The winning bid goes before a U.S. bankruptcy judge in Maine and a Superior Court judge in Quebec on Thursday.

The Fortress subsidiary had submitted a bid of $14.25 million. A Fortress spokesman didn't immediately return a call seeking comment on the auction.

More than a dozen companies expressed interest in the bankrupt company, which owns about 500 miles of track in Maine, Vermont and Canada, although it is unknown how many submitted bids.

One bidder, Eastern Maine Railway, a subsidiary of Canadian-based J.D. Irving, said it partnered with Springfield Terminal Railway Company to bid for the Maine portions of the track.

"In the end, the trustee went forward with a single buyer of the entire MMA railway line (Maine, Quebec and Vermont track). We look forward to working with Fortress Investment Group of New York as they assume operation of the MMA railway," Wayne Power, vice president of Irving's transportation and logistics division, said in a statement.



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