The sale of Montreal, Maine and Atlantic Railway (MM&A) begins at 10 a.m. in Portland, ME.
The railway company filed for bankruptcy protection after 72 oil tankers rolled out of control into the centre of Lac-Mégantic and derailed, setting off an explosion that killed 47 people and destroyed the town's centre.
The sale initially attracted interest from about 20 potential buyers, who will bid on the sale of the company's buildings, property and about 770 kilometres of track in Maine, Vermont and Canada. It's not known how many bids will be made Tuesday in the closed-door auction.
Proceeds from the sale will be used to repay creditors and victims, supplementing $25 million in insurance payouts for wrongful death, personal injury, property damage, fire suppression and environmental impact.
The town of Lac-Mégantic and the Quebec government were forced to front the cash for the town's cleanup, but the sale isn't likely to come close to covering that expense.
The cost of the cleanup is expected to exceed $200 million, more than 12 times the initial bid of $15.7 million, set by
Railroad Acquisition Holdings LLC.
Any winning bid would still have to be approved in a separate hearing scheduled for Thursday.
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