Wednesday, August 21, 2013

Beleaguered MM&A finds potential buyer

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A CANADIAN group is negotiating with the state of Maine in the hope of acquiring the Montreal Maine & Atlantic Railway (MM&A) which filed for bankruptcy on August 7 following the derailment and explosion at Lac-Megantic, Quebec, on July 6.

NB&M Railways, a holding company controlled by J D Irving, Canada, said on August 20 it wants to maintain a rail link to Irving Oil's New Brunswick refinery, which handles crude oil delivered by rail from the Bakken Shale formation in North Dakota, Manitoba, and Saskatchewan.

NB&M Railways owns a number of shortlines including the New Brunswick Southern Railway, Eastern Maine Railway, and the Maine Northern Railway, which together serve New Brunswick and Maine. New Brunswick Southern Railway is also one of the MM&A's creditors.

Mrs Mary Keith, vice-president of communications for Saint John, New Brunswick-based J D Irving, told local media in Maine that her company is monitoring the bankruptcy process. "We are certainly very concerned about maintaining rail connections in the state of Maine," she said.

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