Winning bid in railway auction awaits judicial approval

7:30 AM, Jan 23, 2014   |    comments
Photo: Steve Dugay/AFP/Getty Images.
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PORTLAND, Maine (AP) - Judges in the U.S. and in Canada are set to consider the winning bid for a Maine-based railroad that went bankrupt after a fiery oil train derailment in Canada.

Dual proceedings were set for Thursday following an auction in which a subsidiary of Fortress Investment Group bid $15.9 million for Montreal, Maine and Atlantic Railway. A U.S. Bankruptcy Court judge in Bangor, Maine, and a Superior Court judge in Quebec must sign off on the deal.

The company owns about 500 miles of track in Maine, Vermont and Canada.

Proceeds from the company's sale will be used to repay creditors and victims, supplementing $25 million in insurance payouts available following the disaster in Lac Megantic, Quebec.

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