Montreal Maine & Atlantic Railway Ltd., the firm behind a fatal 2013 oil train derailment in Quebec, will pay $110 million to assist and compensate victims of the crash.
Globe Fuels Solutions, the company that owned the oil shipment, stated it has agreed to contribute to the settlement fund set up for the targets of the derailment. The oil distributor’s contribution brings the quantity elevated for the sufferers’ fund to $345 million (C$ 431,500,000).
MM&A looked for the defense of UNITED STATE as well as Canadian courts in August 2013 after being hit with a flood of personal-injury, wrongful-death and environmental claims related to the derailment of an unmanned train selling crude oil from North Dakota’s Bakken region, which leveled the town of Lac-Megantic, Quebec, and killed 47 people.
The insolvency specialists providing the fund praised WFS on Monday “for its great company citizenship” in accepting the settlement. The bargain leaves Canadian Pacific Train line, CP -2.29 % which transported the oil to Montreal, as the single accused not to resolve.
“We only wish CP were showing similar citizenship,” said Robert J. Keach, the court-appointed trustee managing MM&A’s U.S. personal bankruptcy situation.
Canadian Pacific declined to comment.
Federal government agencies, including the Province of Quebec, the city of Lac-Megantic as well as the Canadian government, are in line for the largest share of the funds, adhered to by the families of those which died or wounded by the collision.
The 2013 crash, which Canadian regulatory authorities criticized on MM&A’s declared “weak safety culture” in addition to insufficient government management, has spurred regulatory authorities in both Canada as well as the United State to push for more stringent guidelines governing oil transport.