Montreal, Maine & Atlantic Railway Ltd., whose runaway oil train exploded and killed 47 people in a Quebec town last month, had its operating certificate suspended by Canada's transportation regulator.
The Canadian Transportation Agency said the carrier lacked sufficient liability coverage in the wake of the disaster in Lac-Megantic, according to a statement today. The suspension of the so-called certificate of fitness will take effect Aug. 20.
Montreal, Maine & Atlantic filed for bankruptcy protection in Canada and the U.S. last week because of potential liability from the July 6 accident, Canada's worst rail disaster since 1910. A criminal probe by Quebec authorities is under way, the town of Lac-Megantic is seeking financial aid to restore the gutted community and a civil complaint alleges a failure to take steps to prevent the derailment.
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