Fortress co. wins bidding for bankrupt railroad

5:35 PM, Jan 21, 2014   |    comments
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PORTLAND, Maine (AP) -- A company affiliated with Fortress Investment Group has won the bidding for a Maine-based railroad that went bankrupt after a fiery oil train derailment killed 47 people last summer in Canada.

A person close to the auction told The Associated Press that a Fortress subsidiary won the closed-door bidding Tuesday for Montreal, Maine and Atlantic Railway. The person requested anonymity because participants were asked not to discuss the outcome until it's formally announced during bankruptcy court proceedings later this week.

The Fortress subsidiary had submitted a so-called "stalking horse" bid of $14.25 million.

Chapter 11 trustee Robert Keach declined comment on the proceedings but said previously that the goal was to recoup losses while keeping the rail line in operation. A Fortress spokesman didn't immediately return a call.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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