LAC-MÉGANTIC, QC, June 9, 2015 /CNW/ - The Plan of Arrangement and Compromise filed by the Monitor on March 31, 2015 included a settlement fund of approximately CDN $293 million. Yesterday, World Fuel Services, based in Florida, announced a contribution to the settlement fund of USD $110 million following the authorization of a class action against World Fuel and Canadian Pacific on May 8, 2015 and ongoing negotiations. The current total value of the settlement fund is approximately CDN $435 million.
Although class counsel is pleased that World Fuel Services have made a meaningful contribution, Canadian Pacific remains the sole hold out defendant and through a series of complex motions, has threatened to challenge the legitimacy of the bankruptcy process established in August 2013. Those motions are scheduled to be heard next week in Sherbrooke, Québec.
While Canadian Pacific has taken these aggressive procedural steps, the people of Lac Megantic remain hopeful that Canadian Pacific and the New York based hedge fund that controls it, will make a near term offer of compensation so that the community can continue to rebuild their town and lives.
SOURCE ROCHON GENOVA LLP
For further information: Daniel Larochelle (819) 583-5686 or Jeff Orenstein (514) 266-7863 or Joel Rochon (416) 363-1867