Mediation approved for Lac-Megantic train blast

(KARL TREMBLAY/QMI Agency)

(KARL TREMBLAY/QMI Agency)

Jean-Francois Desbiens, QMI Agency

, Last Updated: 2:09 PM ET

SHERBROOKE, Que. - A judge has approved a mediation session to resolve insurance claims in the deadly Lac-Megantic railway blast.

Quebec Superior Court judge Gaetan Dumas ruled Thursday that he will preside over the closed-door hearing, along with lawyers for Canadian and U.S. creditors as well as survivors.

A runaway freight train derailed and exploded in the small town near Quebec's border with Maine last July 6, killing 47 people.

It was Canada's deadliest railway explosion and led the Montreal, Maine and Atlantic (MMA) railway to file for bankruptcy.

The mediation meeting is aimed at establishing a claims process for the $25 million to be paid out by the railway's insurance company.

In his ruling, judge Dumas said the meeting is not aimed at reaching an out-of-court settlement.

The hearing will be held on Feb. 26 in Bangor, Maine.

MMA also faces several wrongful-death claims, totalling some $50 million, on behalf of survivors.


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