Wednesday, August 07, 2013
MM&A Pulls the Pin
The Montreal, Maine & Atlantic Railway has filed for bankruptcy protection from its creditors (read "victims"). MM&A went Chapter 11 in the U.S. and its Canadian division filed under the Companies' Creditors Arrangement Act.
“It has become apparent that the obligations of both companies now exceed the value of their assets, including prospective insurance recoveries," chairman Edward Burkhardt said in a statement.
Filing for bankruptcy is "the best way to ensure fairness of treatment to all in these tragic circumstances," he said.
So what does this mean for the families and dependents of the deceased, immolated my MM&A in Lac Megantic, Quebec? Probably very little of any good, that's what. The company's assets may be very well secured to either the parent company or its lenders while the victims' families may wind up holding an empty gruel bowl at the end of the line.
Think of it as the Great Commercial CarWash.