MONTREAL – Insolvent Montreal, Maine & Atlantic Railway could soon resume operations in Canada for several weeks after a Quebec judge approved a request to unlock funds to purchase insurance that it requires to obtain its operating licence.
MM&A has been operating under court supervision while the short-haul railway sorts out massive claims arising from the deadly Lac-Megantic train derailment.
Quebec Superior Court Justice Martin Castonguay agreed Friday to unlock $250,000 so the railway can obtain insurance in case it suffers another accident.
The Canadian Transportation Agency said Thursday that the court’s approval would satisfy its requirement to regain the licence it temporarily withdrew Aug. 13. The renewed licence would allow it MM&A to operate until Oct. 1.
MM&A had objected to the suspension of its operating certificate, arguing that the sudden stop of its operations in Canada would undermine efforts to find a buyer.
The court-appointed monitor told the court that failure to unlock the funds would have disastrous consequences for the economy, several Quebec municipalities, and the railway’s employees.