Subsidiary of Fortress Investment Group won closed-door bidding for Montreal, Maine & Atlantic Railway
PORTLAND, Maine—A Maine-based railroad that went bankrupt after a fiery train derailment killed 47 people last summer in Quebec has been sold in a closed-door auction.
One of the losing bidders in the auction said a subsidiary of Fortress Investment Group won the closed-door bidding for Montreal, Maine & Atlantic (MMA) Railway.
Chapter 11 trustee Robert Keach declined to comment on the proceedings but has said the goal is to recoup losses while keeping the railroad in operation.
A Fortress spokesperson did not return a call seeking comment.
The winning bid will be considered by judges in Maine and Canada Jan. 23.
Railroad Acquisitions LLC had submitted a bid of $14.25-million.
An MMA train with 72 oil tankers left unattended in July rolled into downtown Lac-Megantic, Que., where it derailed and exploded, killing 47 people and decimating the centre of the town.