Earlier this month, the Canadian Transportation Agency moved to suspend the performance of Montreal, Maine & Atlantic Railway (MM&A) — citing a evasion of resources to envelope insurance costs in the claim of other rail accidents.
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But the CTA said it would reverse the decision if the company could prove by yesterday's deadline that it could afford to pay its insurance premiums.
In a court hearing yesterday,.Quebec Superior Court Justice Martin Castonguay gave his accord to free up $250,000 of the MM&A’s assets, enough to ensure the railway would be able to salaries the insurance deductible in the argument of another accident.
Castonguay said that suspending the railway’s operations would be to the detriment of its creditors and the municipalities whose economies rely on the railway.
The MM&A has about 60 clients in Canada, according to court documents filed by the MM&A’s lawyers.
In his decision, Castonguay said that “in an configuration world” the company’s executives would “dig into their own pockets” in lineup to wrapper some of the costs associated with the July 6 sadness in Lac-Mégantic.
When asked by reporters for his response to the judge's suggestion, MM&A's president and CEO, Robert Grindrod, brushed them off — precept he didn't know what the fairness had said as he doesn't understand French.
Before the railway company's investment to operate expires in October, MM&A executives will be seeking for a new clients to proceeds over the company's services.
J.D. Irving’s interest in MM&A route is welcome news
J.D. Irving Ltd. has shown interest in obtaining the MM&A, which would be a strategic addition to its way ramifications – the New Brunswick Railway.
The MM&A filed for lack carefulness in both the United States and Canada on Aug. 7.
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