Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Trustee in Maine Railroad Company Case Deals with Complex Issues
Author: Joel R. Glucksman
Date: September 3, 2013
Key Contacts
Back
A bankruptcy trustee has been appointed by the Office of the U.S. Trustee to manage the debtor Montreal, Maine, and Atlantic Railway in its bankruptcy case, as the railroad company becomes embroiled in a number of legal issues.
The company filed for Chapter 11 bankruptcy protection, only a month after a runaway train owned by the railroad derailed in the small town of Lac-Megantic, Quebec. The crash caused an explosion that claimed 47 lives and has led to a wave of criticism about the management of the company. In the wake of this disaster, Robert Keach has been appointed to serve as the trustee in the case, and he recently discussed its complexities that may factor into proceedings and its reorganization plan.
Although no decisions have been made as of yet, Keach said he is currently examining the company’s finances and determining whether another railroad company will be tapped to operate MMA’s network, or whether the railroad’s assets will be sold, according to the Bangor Daily News. Currently, deciding whether to appoint another railroad to take over the company’s operations has been a hot topic.
“I know there’s been talk about that, but based on the information I’ve been able to gather over the last three days, the financial circumstances don’t warrant that kind of decision right now,” Keach said, according to the newspaper. “While I think a sale of the railroad will certainly be explored, I think it’s highly unlikely someone will be appointed to run this railroad. Right now we’re running this railroad and I don’t expect that to change in the short run.”
The management structure of the railroad has been in contention after the discovery that it only relies upon single-person train crews, rather than the widely adopted practice of two-person train crews. However, there is no indication of whether this will be a factor in the trustee’s decision to appoint another company to manage operations.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.