After filing for bankruptcy early in August, U.S.-based Montreal, Maine & Atlantic Railway Ltd. (MMA), the rail company implicated in the Lac-Megantic fuel train disaster, has been found capable to settle insurance responsibilities but only in the short term. Thus, the suspension of its license announced on Thursday has been reversed, but only good until Oct 1.
"Based on the new evidence provided today, the agency is satisfied that the MMA provides adequate third party liability insurance coverage for operation from August 20 to October 1, 2013," the Canadian Transportation Agency said in a statement.
The earlier suspension would have took effect on Tuesday, Aug 20.
Read: License to Operate of Rail Firm Involved in Quebec Disaster Gets Suspended, Operations Likely to be Permanently Cancelled in Canada
However, Canada's transportation regulator maintained the license suspension reversal was conditional. It continued to put pressure on MMA to show funds that will pay off the mandated self-insured portion of its operations. Otherwise, the suspension will continue to be enforced, this time, effective Aug 23.
On July 6, a gigantic explosion destroyed a large area of Lac-Megantic when an unmanned train carrying 72 tankers of crude oil descended, derailed and crashed into the town near the Maine border in eastern Quebec.
Forty-seven people were killed.
Another rail company, the Canadian Pacific Railway Ltd., had been implicated in the clean-up of Lac-Megantic town because it was the one that had contracted MMA to move the crude oil.
CP Rail has immediately slammed the order.
Read: Train Derailment Disaster: Canadian Pacific Slams Financial Accountability for Cleanup of Lac-Megantic Town
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