Florida Great Lakes Partners to purchase MM&A assets

A Fortress Investment Group partner is expected to purchase the assets of the Montreal, Maine and Atlantic Railway (MM&A), according to a report issued yesterday by Canada's CBC News.

Florida Great Lakes Partners made a winning bid at an auction held yesterday in Portland, Maine. The amount of the bid has not yet been released. The sale still will need to be approved in a separate hearing, scheduled to be held tomorrow.

MM&A filed for bankruptcy protection in August, one month after a train carrying crude oil derailed in Lac Mégantic, Quebec, setting off an explosion that killed 47 people.

The sale initially attracted about 20 potential buyers interested in purchasing MM&A's buildings, property and about 475 miles of track in Maine, Vermont and Canada. It was not known how many bids were made in the closed-door auction yesterday, according to the news report.

Proceeds from the sale will be used to repay creditors and victims, supplementing $25 million in insurance payouts for wrongful death, personal injury, property damage, fire suppression and environmental impact, according to CBC News.