Montreal, Maine & Atlantic Files for Bankruptcy in Canada, U.S.

Mr. Burkhardt said in a statement that the companies' obligations "exceed the value of their assets, including prospective insurance recoveries," because of the derailment. He said the court filings were "the best way to ensure fairness of treatment to all in these tragic circumstances." The railway company has also lost much of its freight business since the derailment, finance chief M. Donald Gardner said in a court filing. Rail services are expected to continue at all other locations in Quebec, Maine and Vermont and service to industries at Lac Megantic could be restored later. Mr. Gardner said the company hopes to sell the railway as a going concern, with proceeds from the sale to be funneled to a trust for the benefit of claimants. The company said it would continue to work with local and provincial government authorities in the Canadian town on the environmental remediation "as long as is necessary," saying it would do "everything within its capacity." The company is seeking court approval of a number of so-called first-day motions, including using cash pledged to its lenders to pay its employees and to keep its trains rolling. An initial hearing on those requests is slated for Aug.
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San Bernardino Workers Withdraw Challenge to Bankruptcy

Solyndra Earlier this year, Solyndra gave their executives bonuses on top of huge pay raises after the company declared bankruptcy, the Washington Times reports. RG Steel Managers at RG Steel were offered around $20 million in bonuses if they could find buyers after the company went bankrupt, The Herald Star reports. Lear Corporation The Lear Corporation sought permission to give their executives $20.6 million in bonuses last January, the Wall Street Journal reports. LightSquared Last month, LightSquared got court approval to give bonuses to four executives shortly after declaring bankruptcy, Bloomberg reports. Tribune Co. Last year, Tribune Co.
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Montreal, Maine and Atlantic files for bankruptcy protection

http://attorney-in-palm-desert.com/more-information/bankruptcy/ width='200px' style='float:left;padding:5px' /> The agreement leaves the California Public Employees Retirement System as the sole challenger to the citys effort to declare bankruptcy. San Bernardino and the union reached a tentative agreement over the terms and conditions of the workers employment on July 31, according to a todays filing in U.S. Bankruptcy Court in Riverside, California. Under the accord, the union dropped its opposition to the bankruptcy and the city withdrew a request with the court to reject bargaining agreements, according to the filing. Calpers contends San Bernardino doesnt qualify for bankruptcy protection because, after a year in bankruptcy court, there is not even a glimmer of a plan to reorganize its finances, it said in an Aug. 2 filing. Calpers wants the city to make up missed payments. San Bernardino filed for bankruptcy relief after discovering a budget deficit in June 2012.
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Railway Involved In Deadly Derailment Files For Bankruptcy

Photograph by: John Kenney , The Gazette MONTREAL a In precarious shape financially even before the Lac-MAgantic crisis, the Montreal, Maine & Atlantic railway filed for creditor protection in both Canada and the U.S. on Wednesday, just over a month after the rail disaster that left 47 dead. "It has become apparent that the obligations of both companies now exceed the value of their assets, including prospective insurance recoveries, as a direct result of the tragic derailment at Lac-MAgantic on July 6," chairman of the board Ed Burkhardt said in a communiquA. The company's Canadian filing lists assets of $17.9 million, most of it buildings, land and track structure, and liabilities of $48.1 million, $43.4 million of which is "due to the parent company" a presumably Rail World Inc. of Chicago. Under "contingent liabilities," which would include "potential claims" from the derailment, there is no dollar figure, only the letters tbd (to be determined).
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