10/07/2015 13:09 EDT | Updated 10/07/2016 01:12 EDT

Canadian Pacific ready to drop appeal in Lac-Megantic case for legal protection

MONTREAL — Canadian Pacific Railway is reportedly willing to drop its motion to appeal the $450-million settlement fund for victims of the Lac-Megantic tragedy if it is granted certain legal protections.

Lawyers for Montreal Maine and Atlantic Railway, the now-defunct railroad company responsible for the derailment that killed 47 people on July 6, 2013, tabled a motion earlier this week to modify conditions of the settlement fund for victims.

Andrew Adessky of Richter, the court-appointed monitor of MMA's bankruptcy proceedings, says Canadian Pacific (TSX:CP) is willing to drop all opposition to the plan if it receives certain legal protection should it be taken to court by creditors and victims of the train derailment.

CP has been the only company accused in the derailment to not participate in the settlement fund and over the summer it filed motions to appeal a judge's decision approving the money for victims and creditors.

All the companies that offered money were to be released from legal liability for the derailment.

CP objected to the fund because it said it wouldn't be able to properly defend itself if it was taken to court by one of the firms released from legal liability.

Quebec Superior Court Justice Gaetan Dumas is scheduled to hear the new motion Thursday morning in Granby, 80 kilometres east of Montreal.

The Canadian Press