Status of the Montreal Maine & Atlantic Canada Co. file and the filing of a Plan
On March 31, 2015, Montreal Maine & Atlantic Canada Co. filed a Plan of compromise and arrangement (“Plan”). Richter, in its capacity as Monitor, has announced that it will hold information sessions on May 27, 2015 at 2:00 pm and on June 3, 2015 at 6:00 pm, 2015, at the Centre Sportif Mégantic in Lac-Mégantic to explain the Plan to the public. The main purpose of the Plan is the distribution of approximately $300 million of funds committed so far from various third parties. At a creditors' meeting, scheduled to take place on June 9, 2015 at 2:00 pm at the Centre Sportif Mégantic, the victims or their designated representatives will be called upon to vote on the Plan.
Additionally, detailed packages were mailed to all creditors. The packages include the Plan, voting letter, the Monitor’s report and other related documents. Also included in the package is a Medical Declaration Form to be completed by claimants who suffer from post-traumatic stress. This form must be completed and remitted to the Monitor no later than August 31, 2015.
If the Plan is approved by the creditors and subsequently by Canadian and American courts, the distribution to the various victims of the contents of the indemnity fund, as well as any additional amounts that may be contributed, should take place in October/November 2015.
History of the Montreal Maine & Atlantic Canada Co. file
After the tragedy on July 6, 2013 in Lac-Mégantic, Montreal Maine & Atlantic Canada Co. and Montreal Maine & Atlantic Railway Ltd. placed themselves respectively under the protection of the Companies' Creditors' Arrangement Act (“CCAA”) in Canada and Chapter 11 of the United States Bankruptcy Code in the United States. The purpose of this step, beyond the maintenance of railway operations and jobs, as well as the sale of the companies’ property, was to enable the American trustee and Canadian lawyers for the companies, namely Gowlings, as well as Richter, in the capacity of Monitor and its lawyers, Woods, to create a compensation fund for the victims in a structured and supervised process that would be much quicker than years of litigation in Canada and the United States.
In this regard, discussions began in August 2013 with the various defendants in the class action case, as well as with those in suits for damages brought in the United States, in order to gauge their interest in contributing to an indemnity fund in exchange for receiving releases from all litigation in Canada and the United States. Throughout the process, the involvement of the Class Action representatives, the American lawyers, and the Government of Quebec has been crucial to the rapid and efficient progress of the file to the benefit of the victims.
As a result of many months of discussions, as at the date of the filing of the Plan, total committed contributions were approximately $300 million.
The compensation fund, if approved, allows for the following partial distribution between the creditors:
For further information:
Media relations manager