The Montreal, Maine & Atlantic Railway, based in the United States, said it filed for chapter 11 protection in U.S. Bankruptcy Court in Maine and its Canadian division took similar action in Montreal, The (Toronto) Globe and Mail reported.
"It has become apparent that the obligations of both companies now exceed the value of their assets, including prospective insurance recoveries," MM&A Railway Chairman Edward Burkhardt said in a statement, adding bankruptcy is "the best way to ensure fairness of treatment to all in these tragic circumstances."
The July 6 train derailment in Lac-Megantic, Quebec, set off a series of explosions that devastated the city's downtown district.
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