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Quebec accident fallout: Canadian Transportation Agency extends deadline for MMA suspension

The Canadian Transportation Agency (CTA) on Friday extended the deadline for the suspension of the Montreal, Maine & Atlantic Railway's (MMA) operations in Canada.

The railroad provided evidence that it has adequate third-party insurance to keep operating in Canada until Oct. 1, according to the CTA, which previously issued a decision on Aug. 13 that called for suspending MMA's operations as of today.

The agency is suspending MMA's "certificate of fitness" — a license that enables the railroad to operate in Canada — because it hasn't demonstrated that its third-party liability insurance is adequate to support ongoing operations beyond Oct. 1. Adequate third-party liability insurance coverage is a legislative requirement to operate a railroad in Canada.

The suspension follows the MMA's derailment July 6 in Lac-Mégantic, Quebec, that caused 47 fatalities, scores of injuries and significant property damage. On Aug. 7, the MMA announced it filed for protection under Chapter 11 of the United States Bankruptcy Code and MMAC filed for relief under Canada's Companies' Creditors Arrangement Act as a result of claims associated with the accident.

Contact Progressive Railroading editorial staff.

More News from 8/20/2013