World Fuel Services Corporation And Related Companies Have Agreed, Subject To Court Approval, To Contribute To The Lac Mégantic Compensation Fund
Montreal, Qc, June 8, 2015/CNW/-Robert J. Keach as Chapter 11 Trustee (the “Trustee”) to Montreal, ME & Atlantic Railway Ltd (“MMA”), Montreal, ME & Atlantic Canada Co. (“MMAC”) and Richter Advisory Group Inc. as Monitor in the ongoing proceedings of MMAC pursuant to the Companies Creditors Arrangement Act, announce the conclusion of an agreement whereby, subject to Court approval in Canada and in the USA, World Fuel Services Corporation and related companies (“WFS”) will contribute US$110,000,000 to the compensation fund that has been established for the victims of the Lac-Mégantic derailment of July 6, 2013.
This contribution by WFS will increase the compensation fund from approximately CDN$295,000,000 (US$235,200,000) to CDN$431,500,000 (US$345,200,000).
MMAC will file an amended plan in the CCAA proceedings to include the WFS contribution, and the Trustee will make similar amendments in the chapter 11 case of MMA. This contribution of US$110,000,000 will be distributed amongst the creditors in accordance with the scheme of distribution established under the existing plans filed by MMAC and the Trustee on March 31, 2015. This agreement leaves Canadian Pacific Railway as the only non-settling defendant. “This settlement is the product of months of difficult and complex negotiations among numerous stakeholders, including the wrongful death claimants’ U.S.-based counsel, class counsel in Quebec and the government of the province of Quebec” said Keach, Gowlings (MMAC’s counsel) and Richter. “We applaud WFS for its good corporate citizenship in reaching this settlement to the benefit of all of the victims of the Lac-Megantic derailment”. Keach added: “We only wish CP were showing similar citizenship.”