Lac-Megantic Settlement Fund Complete and MMA Plans Effective Today
Portland and Augusta, ME and Manchester, NH (December 22, 2015) — Robert J. Keach, of Bernstein Shur, the Chapter 11 trustee for Montreal Maine & Atlantic Railway, Ltd., and Richter Advisory Group, Inc., the monitor in the CCAA case for Montreal Maine & Atlantic Canada, announced today that the settlement fund established under the court-approved plans in both cases has been fully funded, in the amount of approximately CAN $460 million, and both plans have become effective. The funding of the settlement fund paves the way for distributions to victims to begin as soon as practicable in the New Year.
The trustee will this week transfer approximately CAN $114 million to the trust for the benefit of the holders of wrongful death claims. The decedents’ families will soon receive notice from the wrongful death trustee, an individual chosen jointly by the trustee and the lawyers for the victims’ families, regarding upcoming distributions to be made to those lawyers for the benefit of the families. “We are very pleased that we will be able to fund the trust before the holidays, and that distributions will reach the families as soon as possible next year,” said Keach.
Distribution of approximately CAN $317 million to the holders of personal injury, moral damage, and economic and property claims, as well as to the federal, provincial and local government claims, will be handled by the monitor and will also proceed in the New Year. Richter Advisory Group along with Gowling Lafleur Henderson, counsel to MMA Canada and Woods LLP, counsel to the monitor, acknowledge the efforts of all parties to enable a timely distribution to the residents of Lac-Megantic following this terrible tragedy.
About Bernstein Shur
Founded in 1915, Bernstein Shur is a New England-based law firm with clients across the U.S. and around the world. The firm has more than 100 award-winning attorneys and professionals who provide practical and innovative counsel in more than 20 key areas, catering to a broad range of clients and industries. Bernstein Shur is known for simplifying complex issues and winning through steadfast persistence. The firm 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.