Bankruptcy judge nixes plan for Mitchell to distribute rail disaster insurance funds for now
By Judy Harrison, Bangor Daily News, Maine | |
McClatchy-Tribune Information Services |
U.S. Bankruptcy Judge
"The plan fails to provide for adequate means of implementation under the bankruptcy court," he said after a hearing that lasted more than four hours.
He also said the plan, as proposed, required him to tell a Canadian judge what to do, which he could not legally do.
A tanker train, owned by MMA, derailed and exploded
The
Kornreich has been working with his counterpart in a Canadian court, where litigation also is pending, to coordinate the filing of claims by debtors, creditors and victims. The deadline for filing such claims is
The judge also ordered that bankruptcy trustee
According to court documents, there is
Under the proposal, insurance proceeds would be divvied up with 75 percent going to the wrongful death and personal injury claimants and 25 percent going to the property damage claimants, which would be handled through the Canadian insolvency proceeding of MMA's Canadian subsidiary. Those percentages later were revised to a 65/35 split.
In addition to filing claims in bankruptcy courts in
Also pending is the sale of the railroad. MMA's assets were sold in January for
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