Montreal Maine trustee rebuffs wrongful death claimants’ reorganization plan

The bankruptcy trustee for Montreal Maine & Atlantic Railway Ltd said that a recent reorganization plan — filed by families of people who died when one of the company’s trains derailed and exploded — is “not a serious plan.”

Robert J. Keach, the trustee, said that the plan, filed in U.S. Bankruptcy Court in Bangor, Maine on January 29, “will go nowhere” and is “facially non-confirmable,” according to Bloomberg News.

A group of wrongful-death claimants submitted the plan, which would allocate 75 percent of $25 million in insurance to the families of people who died in the July accident in Lac-Megantic, Quebec. Claimants seeking compensation for property damaged in the derailment and subsequent fire would receive the other 25 percent.

Keach said that the plan relies on the assumption that insurance proceeds, a Canadian asset, could be transferred to the United States. An attorney for the official victims’ committee said that proceeds from the Canadian insurance policy would not be turned over to a U.S. court without an agreement between both countries’ courts.

Keach also said the plan would be a bad deal for the majority of claimants. He said the plan was proposed by a “splinter group” not participating in the official victims’ committee, and that it was a tactical move related to their resistance to Keach’s plan to move the wrongful death lawsuits from Illinois to Maine.

Comments are closed.

CHICAGO LAW OFFICE
351 W. Hubbard St. Ste 810
Chicago, IL 60654

Phone: 312.222.0010
Fax: 312.222.1203

MAP/DIRECTIONS

JOLIET LAW OFFICE
175 N. Chicago St.
Joliet, IL 60432-4126

Phone: 312.222.0010
Fax: 312.222.1203

MAP/DIRECTIONS

Phone: 312.222.0010

SCHOLARSHIP

PODCAST:
Our podcast covers personal injury topics and cases of interest.

Chicago Injury Alert by Briskman Briskman & Greenberg

© 2020
Briskman Briskman & Greenberg
All rights reserved.
Disclaimer | Sitemap | Privacy

The law firm of Briskman Briskman & Greenberg represents injured people throughout Illinois, including Chicago, the Chicagoland area, Joliet, Waukegan, Cicero, Evanston, Arlington Heights, Wheaton, Bolingbrook, and Naperville, as well as other cities within Cook County, Will County, DuPage County, Lake County and McHenry County. Briskman Briskman & Greenberg also represents injured people throughout Wisconsin, including Kenosha, Milwaukee, and Madison.

Custom Legal Marketing | Attorney Advertising