Sale of bankrupt railroad to close next week

PORTLAND, Maine (AP) - The sale of the Maine-based railroad responsible for a deadly oil train derailment in Quebec is due to completed next week.

Chapter 11 trustee Robert Keach said Thursday that the $15.85 million sale of Montreal, Maine and Atlantic Railway will close on May 15. A bankruptcy judge gave permission to delay a separate Canadian transaction, allowing a few more days for the buyer to receive a certificate of fitness from the Canadian government.

The bankrupt railroad is being sold to a subsidiary of New York-based Fortress Investment Group to help pay off creditors.

The buyer plans to change the railroad's name to Central Maine and Quebec Railway. The company said it hopes to recapture lost business but has no plans to try to bring back oil shipments.


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