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
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
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.