Bankrupt MMA railway sells its Quebec assets for $3 million

First responders fight burning train cars after a train derailment and explosion in Lac-Megantic,...

First responders fight burning train cars after a train derailment and explosion in Lac-Megantic, Que., in this file photo taken July 6, 2013 and provided by the Transportation Safety Board of Canada. (REUTERS/Transportation Safety Board of Canada/Handout)

Jean-Louis Fortin, QMI Agency

, Last Updated: 1:42 PM ET

MONTREAL — The railway at the centre of the Lac-Megantic, Que., railway disaster sold its Quebec holdings for barely a tenth of their value, QMI Agency has learned.

A runaway train carrying crude oil derailed and exploded in the small town near the Maine border on July 6, 2013, killing 47 people in Canada's deadliest railway blast.

The bankrupt Montreal, Maine & Atlantic Railway (MMA), which operated the train, sold its Quebec-based locomotives and land for $3 million in January, documents show.

The value of the Quebec assets was more than $30 million, according to various assessment rolls examined by QMI Agency.

U.S.-based Central Maine & Quebec Railway purchased MMA's holdings in Quebec, Maine and New Brunswick for $15 million.

The firm told QMI Agency the low purchase price won't guarantee any profits.

"The goal is that, commercially, it's a profitable venture, but it will take time to see if clients show interest," railway spokesman Daniel Matte said.


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