(SHERBROOKE) All legal obstacles that prevented the distribution of the compensation fund for victims of the July 6, 2013 in Lac-Mégantic now reached $ 445 million are now removed.
Gaetan Dumas judge of the Superior Court sent the parties Tuesday morning the judgment confirming that the Canadian Pacific withdrew its opposition to the plan of arrangement with creditors of the Montreal, Maine and Atlantic Railway (MMA).
The Government of Quebec and the class action, which had asked for a few days of reflection in court, have endorsed the amendments granted to CP and for continuing progress for the distribution of money to the victims.
Last Friday, US courts have also approved the plan.
Continued after the railway tragedy of Lac-Mégantic who made 47 dead, CP is the only one not joining to the compensation fund. After having indicated its intention to challenge the plan before the Court of Appeal, CP chose last week not to oppose to pave the way for the distribution of claims to victims.
“Another milestone reached., Everyone agreed. The parties rely on the judge’s decision, “said the lawyer for the MMA, Mr. Patrice Benoit.
Even if all parties have approved the plan of arrangement with creditors of the MMA, call time must be expired before the sums granted by responsible companies of the deadly derailment of Lac-Mégantic pay compensation to their victims.
“When all the judgments will end, companies will pay the amounts due. In about three weeks, they should start doing it. They typically have five to 30 days, depending on the negotiated agreements, to contribute to the compensation fund, “says Benoit.
Once the amount paid to the compensation fund for victims of the July 6, 2013, the first financial compensation should be paid.
“A first partial distribution should be made before Christmas. Late requests must be heard quickly and we need to keep some money in reserve until a complete distribution is made in 2016, “says Mr. Patrice Benoit.
The latter explains that the effect of the exchange rate between Canadian and US dollars has pushed the total amount of the Compensation Fund of $ 431 million in June to nearly $ 445 million in mid-October.