PORTLAND, Maine — More than two years after the oil train crash that killed 48 people, the bankrupt estate of the Montreal, Maine and Atlantic Railway has cleared the way for a final settlement that would distribute $111 million (Canadian) to families of the victims.
Attorneys for the bankrupt railroad reported Thursday that a Canadian court cleared the way for U.S. approval of the settlement. Canadian Pacific Railway had objected to the settlement terms between MMA and 24 other defendants.
U.S. Bankruptcy Judge Peter Cary is scheduled to consider a motion to approve that bankruptcy plan during a hearing beginning 8:30 a.m. Friday.
Canadian Pacific has denied any liability in connection with the July 2013 crash in Lac-Megantic, Quebec.
The bankruptcy plan also outlines how the railroad will compensate for other claims, including moral damages, personal injury claims and property claims tied to the derailment.
The distribution plan in the wrongful death claims of the 48 victims calls for compensation ranging from payments of $478,000, or 0.43 percent of the settlement, to $5.3 million, or 4.8 percent, based on a point system that factors in the age of the victim, the age of surviving children and spouse and other conditions.
The total settlement fund with 24 defendants reached $431 million (Canadian) with a contribution from World Fuel Services Corp. in June.