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U.S. court to rule on settlement fund for victims of Lac-Megantic rail disaster

Darpan News Desk The Canadian Press, 24 Sep, 2015 12:12 PM
    PORTLAND, Maine — A bankruptcy judge in Maine is set to rule on a $338 million US settlement fund for victims of the 2013 train derailment in Lac-Megantic, Que., that claimed 47 lives.
     
    The U.S. bankruptcy trustee wants the judge to approve the plan today so money can begin flowing to those who were harmed by the disaster.
     
    But several parties — including Canadian Pacific — are urging the judge to reject the deal.
     
    A large swath of downtown Lac Megantic was destroyed when the runaway train with 72 oil tankers derailed on July 6, 2013.
     
    The railroad contends it bears no responsibility and says the deal would hinder its ability to defend itself against lawsuits.
     
    Bankruptcy trustee Robert Keach says CP is trying to hold up payments to provide leverage to negotiate a lower contribution.
     
    At a court hearing in Canada earlier this year, a lawyer for CP said the disaster did not involve the company's tracks, rail cars, products or employees.

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