$338M fund in deadly oil train derailment close to approval

FILE - In this July 6, 2013 photo, smoke rises from railway cars carrying crude oil after derailing in downtown Lac Megantic, Quebec. A U.S. bankruptcy trustee says he hopes checks from a $338 million settlement fund for victims of the derailment that killed 47 people can be mailed in a month or two. A Canadian judge gave conditional approval Thursday, Oct. 8, 2015, to changes in the settlement plan under which Canadian Pacific dropped its objection, setting the stage for final approval Friday by a judge in U.S. bankruptcy court. (Paul Chiasson/The Canadian Press, File, via AP) FILE - In this July 6, 2013 photo, smoke rises from railway cars carrying crude oil after derailing in downtown Lac Megantic, Quebec. A U.S. bankruptcy trustee says he hopes checks from a $338 million settlement fund for victims of the derailment that killed 47 people can be mailed in a month or two. A Canadian judge gave conditional approval Thursday, Oct. 8, 2015, to changes in the settlement plan under which Canadian Pacific dropped its objection, setting the stage for final approval Friday by a judge in U.S. bankruptcy court. (Paul Chiasson/The Canadian Press, File, via AP)

By Associated Press October 9, 2015 3 min read

PORTLAND, Maine (AP) – A Canadian railroad’s withdrawal of opposition to a $338 million fund for victims of an oil train derailment that killed 47 people in Quebec has set the stage for final approval and compensation for victims.

A U.S. bankruptcy trustee and Canadian Pacific agreed to modify the settlement fund to give the railroad some legal protection, prompting the railroad’s decision to end its objections. A Canadian judge gave conditional approval on Thursday, and a U.S. bankruptcy judge is to consider the plan Friday.

Victims and the province of Quebec have until Tuesday to confirm their support of the changes in Canada.

Barring any surprises, the timeline would allow payments to be made to victims of the disaster by year’s end, said Robert Keach, the bankruptcy trustee. About $83 million is being set aside to settle wrongful death claims.

“We’re very happy for the victims that we were able to get to this point. They’re the primary focus here,” Keach said.