Bankruptcy Court May Handle Compensation for Victims in Lac-Magantic Train Crash

On behalf of Macdonald Fernandez LLP on Tuesday, September 3, 2013.

Montreal, Maine and Atlantic Railway, owner of the runaway freight train that crashed in Lac-Megantic, Quebec, killing 47 people, filed for Chapter 11 bankruptcy protection in Bangor, Maine, and Canada on August 7, 2013. Last month, the railway asked Bankruptcy Judge Louis Kornrich to appoint a committee to represent wrongful death and personal injury claimants, seeking to avoid the burdens of handling dozens of individual lawsuits. The estates of 33 of the victims joined in supporting the motion. The railway is likely to be sold in the course of bankruptcy proceedings, reported the Maine Sun Journal.