$3M Loan Allows Montreal, Maine & Atlantic Railway to Continue Operations Through Sales Process, Rehire U.S. & Canadian Workers
Canadian Affiliate Gets Extension Through Feb., 1 2014
Bernstein Shur attorney Robert Keach, the trustee appointed to operate Montreal, Maine and Atlantic Railway through its bankruptcy, announced that the railway closed a $3 million loan from Camden National Bank last Friday. The loan funding begins immediately and allows the railroad to operate stably and safely into 2014. As a consequence of the financing, among other factors, the railway’s Canadian affiliate received an extension of operational authority in Canada until February 1, 2014. On Friday, the Bankruptcy Court in Bangor, Maine, also approved an arrangement between the trustee and the Federal Railroad Administration to fund the costs of the bankruptcy case.
With the loan in place, all U.S. and Canadian road trains will be staffed by two-man crews, regardless of cargo, resulting in increased employment. Since October 1, a dozen U.S. employees and nine Canadian employees have been rehired and are back at work. It’s expected that three more U.S. workers and four more workers in Canada will be rehired. Stephen Matteo, senior vice president of commercial banking at Camden National Bank said, “Getting people back to work gives our bank a strong sense of community pride. Keeping the railway running safely is good for the people and economies of Maine, the Northeast and Eastern Canada.”
The loan permits the railway to continue to operate and generate increased revenue during the sale process. The safe and continued railway operation is expected to increase the sales price and ultimately benefit claimants, including victims of the Lac Megantic derailment. “This financing will allow us to operate comfortably through a reasonable and thorough sale process,” said Keach. “This is particularly fortunate given the high level of interest.”
Eighteen potential suitors have expressed interest in purchasing MMA’s assets and a dozen have signed nondisclosure agreements.
About Bernstein Shur
Widely regarded as one of New England’s most entrepreneurial law firms, Bernstein Shur has more than 100 attorneys in offices in Maine and New Hampshire. Founded in 1915, the firm provides practical and innovative counsel in the areas of business law, litigation, and municipal law to clients throughout the region and around the world. Bernstein Shur is Maine’s exclusive member of Lex Mundi, the world’s leading association of independent law firms. More information is available at www.bernsteinshur.com.
About Camden National Corporation
Camden National Corporation is the holding company employing more than 500 Maine residents for two financial services companies including Camden National Bank and the wealth management company, Acadia Trust, N.A. Camden National Bank is a full-service community bank with a network of 50 banking offices throughout Maine. Member FDIC. www.camdennational.com.