Lac-Mégantic disaster's MM&A sold to Florida Great Lakes Partners
Sale at auction in Portland, Maine, still needs approval at separate hearing
The assets of the railway company at the centre of the fatal derailment in Lac-Mégantic, Que., have been sold to an American firm.
Florida Great Lakes Partners, which is partnered with Fortress Investment Group, made the winning bid for the Montreal, Maine and Atlantic Railway (MM&A), at an auction Tuesday in Portland, Maine.
The amount of the winning bid has not yet been released.
The sale still has to be approved in a separate hearing scheduled for Thursday.
Cleanup expected to cost more than $200M
The railway company filed for bankruptcy protection after 72 oil tankers rolled out of control into the centre of Lac-Mégantic, setting off an explosion that killed 47 people and destroyed the town's centre.
- Head of railway in Lac-Mégantic disaster says he's 'also a victim'
The sale initially attracted about 20 potential buyers interested in purchasing the company's buildings, property and about 770 kilometres of track in Maine, Vermont and Canada. It's not known how many bids were made Tuesday in the closed-door auction.
Proceeds from the sale will be used to repay creditors and victims, supplementing $25 million in insurance payouts for wrongful death, personal injury, property damage, fire suppression and environmental impact.
With files from The Canadian Press and The Associated Press