Deadline set for claims against bankrupt railroad

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PORTLAND, Maine (AP) - Creditors who are owed money following a deadly train derailment and Chapter 11 bankruptcy of the railroad have two months to file a claim.

Bankruptcy judges in the U.S. and Canada have agreed on a June 13 deadline for claims that relate to fiery disaster in which 47 people were killed in Lac Megantic, Quebec.

A U.S. bankruptcy judge in Maine also has granted a moratorium on further asset-liquidation plans in the case.

Chapter 11 trustee Bob Keach said the moratorium will give all parties time to work on a settlement fund that would be used to compensate all victims.

The bankrupt railroad, Montreal, Maine and Atlantic, is being sold to help pay off creditors. Keach said he expects the deal to close by month’s end.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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