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Bankrupt Railroad's Locomotives to be Auctioned

MILO, Maine — Locomotives formerly owned by the company responsible for last year's deadly derailment in Quebec are going up for auction to repay debts to a Maine bank.

All told, 31 locomotives are being auctioned at 10 a.m. Tuesday in Milo, Maine. Twenty-four were owned by the Montreal, Maine & Atlantic Railways, which filed for bankruptcy after a runaway oil train exploded and killed 47 people in Quebec. Seven others were affiliated with MMA's corporate parent, Rail World Inc.

The auction will help pay back the $3.7 million owed to Maine-based Bangor Savings Bank.

The locomotives were forfeited by a subsidiary of New York-based Fortress Investment Group, which bought the bankrupt railroad. The line now operates under new ownership as Central Maine and Quebec Railroad.