What's next for MMA?

From The Portland Press Herald:

The Portland Press Herald wrote:The trustee for the bankrupt Montreal, Maine & Atlantic Railway and the lawyers and consultants working on his behalf are asking a federal bankruptcy judge to approve nearly $3 million in compensation and reimbursement of expenses, which would come out of the railroad’s estate, for their work bringing the railroad this far through Chapter 11 bankruptcy proceedings.
. . .
The five requests total nearly $2.9 million. If approved by federal Judge Louis Kornreich of the U.S. Bankruptcy Court in Bangor, the five companies would be paid first among secured creditors out of the railroad’s estate. Other secured creditors include Camden National Bank, the Federal Railroad Administration and Wheeling & Lake Erie Railway.
. . .
How much money would be available from MM&A’s estate to compensate the victims’ families and others impacted by the disaster is a question that’s been asked since the beginning of the bankruptcy case.

In bankruptcy law, secured creditors get paid first and unsecured creditors get the rest. Victims, such as those in Lac- Megantic, are considered unsecured creditors.

Read the rest of the article at: http://www.pressherald.com/news/Fees_ne ... ptcy_.html" onclick="window.open(this.href);return false;

I'm having a hard time believing that the FRA's loans are subrogated to anyone else's standing as a creditor. Is this really correct?

Photos by Michael Berry:

http://www.railpictures.net/viewphoto.php?id=484887" onclick="window.open(this.href);return false;

http://www.railpictures.net/viewphoto.php?id=485097" onclick="window.open(this.href);return false;

MEC407 wrote:Photos by Michael Berry:

http://www.railpictures.net/viewphoto.php?id=484887" onclick="window.open(this.href);return false;

http://www.railpictures.net/viewphoto.php?id=485097" onclick="window.open(this.href);return false;

On that note, CMQ bought the whole railroad. One could assume CMQ might be looking at unembargoing the line. Of courae that would involve moving the train. Who's going to pay the rerailing, car hire, and moving costs associated with the abadoned train? CMQ purchased the property, not the rolling assets or the debt...

I would assume the owners of the engine/cars would have to pay for re-railing and transit, since the estate of MMA isn't likely to. If the owners refuse CMQ could seize the cars and cut them up or push them off to the side. But I'm sure everyone would be motivated to get them going if they reactivate the line. I am not an expert but this is my best guess.

CMQ could start charging them "storage fees" until the owners scrap the train, lol

Isnt the branch out of service due to the deteriorated track condition, besides just the derailment, that service on the line can not be restored until emergency track repairs are also performed.

From The Portland Press Herald:

The Portland Press Herald wrote:Canadian regulators have approved the Central Maine and Quebec Railway’s application to operate a railroad in that country, opening the way for the company to acquire the Canadian assets of the bankrupt Montreal Maine and Atlantic Railway.

The Central Maine and Quebec Railway acquired MM&A’s assets in the United States on May 15 and has been operating on the U.S. side of the border since that time. The sale of the Canadian assets was delayed until Canadian regulators approved a so-called “certificate of fitness,” which they did on Tuesday. Before operating a railroad in Canada a company is required to obtain that certification, which confirms that the company has adequate third-party liability insurance coverage.

Read the rest of the article at: http://www.pressherald.com/2014/06/25/c ... -railroad/" onclick="window.open(this.href);return false;

And more specifically....

https://www.otc-cta.gc.ca/eng/ruling/238-r-2014" onclick="window.open(this.href);return false;

Of interest, the Canadian corporation to operate the lines within Canada (required by treaty) has been organized and is names Central Maine Quebec Canada, Ltd.

Will they take full control of the the Canadian operations over the next few days?

According to the caption of this photo by Michael Berry, the 8583 and its nine cars have finally been moved:

http://www.railpictures.net/viewphoto.php?id=487032" onclick="window.open(this.href);return false;

MEC407 wrote:According to the caption of this photo by Michael Berry, the 8583 and its nine cars have finally been moved:

http://www.railpictures.net/viewphoto.php?id=487032" onclick="window.open(this.href);return false;

Is the 8583 salvageable or scrap? Wonder if it was it drained of water and other liquids before the cold winter arrived by someone from the MM&A?

Scrap.

Good question. The answer definitely depends on how extensive the vandalism is and whether or not it has any freeze damage. If it does have freeze damage (i.e. cracked engine block), rebuilding it would cost more than it's worth. It would be more economical to salvage the traction motors, trucks, etc., and scrap the rest. High horsepower 4-axle GEs aren't exactly in high demand to begin with... you'll actually find more railroads interested in B23-7s than B39-8s.