Montreal, Maine, and Atlantic Railway Files for Chapter 11 

Montreal, Maine, and Atlantic Railway has filed for bankruptcy. A clerk at the Maine Bankruptcy Court in Bangor confirms to TV 5 that the company filed Chapter 11 on Wednesday afternoon. In July, 47 people died when an oil train derailed and exploded in Lac-Megantic, Quebec. The chairman of the board of Montreal, Maine and Atlantic Railway said earlier this week that the railroad was no longer hauling crude oil over its rail lines. MMA laid off workers because of the Quebec disaster. Montreal, Maine and Atlantic Chairman of the Board, Edward Burkhardt, released a statement saying, ” It has become apparent that the obligations of both companies now exceed the value of their assets, including prospective insurance recoveries, as a direct result of the tragic derailment at Lac-Megantic, Quebec on July 6th, and a process under Chapter 11 and the CCAA is the best way to ensure fairness of treatment to all in these tragic circumstances.”According to the release, all essential rail services in Maine, Vermont, and Quebec, except Lac-Megantic, will continue. Service to Lac-Megantic could be restored if authorities decide to allow such service. Governor LePage has released the following statement:”Maine DOT will vigilantly and actively participate in the bankruptcy and in any related proceedings before the Surface Transportation Board to protect the public interests of the State of Maine and its citizens and the rights of shippers to receive service. It is critical that shippers have accessibility to the rail lines, which provide great economic benefit to our State. “The LePage Administration is committed to ensuring safe, continuous rail operations within the State of Maine for the benefit of shippers, the business community, and the citizens of the State of Maine. “In addition, MaineDOT has and will continue to consult and work with the Federal Rail Administration in this situation.”