January 22, 2014

Investment fund acquires Montreal Maine & Atlantic

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THE railway involved in the derailment and explosion of an oil train at Lac Megantic, Quebec, last July, has been acquired by Railroad Acquisisition Holdings LLC, an affiliate of New York-based Fortress Investment Group following an auction on January 21.

The Montreal Maine & Atlantic Railway (MM&A) filed for bankruptcy protection last August following the accident, which killed 47 people. MM&A operates a 1199km network in Maine, Vermont and Quebec, and was previously part of the Chicago-based Rail World group.

According to local media in Maine, Railroad Acquisition Holdings submitted a winning bid of $US 14.25m during a 40-minute auction that involved up to 18 interested bidders.

Fortress Investments Group owns the Florida East Coast Railway and previously owned shortline and regional rail operator RailAmerica until its sale to Genesee & Wyoming in 2012.

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