Tue 9 Jun 2015, 08:11 GMT

World Fuel Services announces train crash settlement


Company says it will contribute $110 million to a fund to compensate parties who suffered losses as a result of the 2013 Quebec derailment.



Leading marine, aviation and land fuel specialist, World Fuel Services Corporation, has announced that it has entered into a settlement agreement with the Trustee for the U.S. bankruptcy estate of Montreal, Maine & Atlantic Railway Ltd., Montreal, Maine and Atlantic Canada Co., and the monitor in MMAC's Canadian bankruptcy to resolve claims arising out of the July 2013 train derailment in Lac-Mégantic, Quebec.

Under the terms of the settlement agreement, which is subject to approval by the creditors and courts involved in the U.S. and Canadian bankruptcies, the company says it will contribute US$110 million to a compensation fund established to compensate parties who suffered losses as a result of the derailment.

The company expects that the full settlement amount will be covered by insurance. As part of the settlement, World Fuel Services says it will also assign to the Trustee and MMAC certain claims it has against third parties arising out of the derailment.

In consideration of the settlement amount and the assignment of claims, the company and its affiliates, as well as the company's former joint ventures, DPTS Marketing, LLC and Dakota Petroleum Transport Solutions, LLC and each of their affiliates, will receive the benefit of the global releases and injunctions barring claims against the WFS Parties set forth in the respective bankruptcy plans filed by the Trustee in the U.S. and by MMAC in Canada. The Province of Quebec and other key creditors in the bankruptcies have consented to the settlement.

"We believe that participating in the settlement and contributing to the compensation fund is in the best interests of our shareholders and will also aid in providing closure to those affected by this tragic accident," said Michael J. Kasbar, chairman and chief executive officer. "The entire community of Lac-Mégantic remains in our thoughts and prayers as they continue to recover from this tragedy."

Image: Lac-Mégantic train crash in July 2013.


Seaspan Lions (STS) LNG bunkering operation. Low-GHG methane could keep LNG-capable fleet compliant as regulations tighten, DNV paper argues  

Biomethane and e-methane offer a compliance pathway for LNG-capable ships, says DNV.

HaiSea Kermode and Valencia Knutsen vessel at sea. HaiSea's fleet of electric and dual-fuel tugboats completes 100th LNG carrier escort into Kitimat  

The Haisla Nation and Seaspan joint venture marks one year of LNG carrier escort operations in British Columbia.

Mount Vision naming ceremony. Naming ceremony held for LNG dual-fuel VLCC Mount Vision  

Crude oil tanker named in ceremony held in China.

Green Pearl and Cielo Ace ship-to-ship (STS) bio-LNG bunkering operation. MOL signs bio-LNG supply deals for car carriers across Northern Europe and Mediterranean  

Japanese shipping group expands bio-LNG bunkering to Spanish ports as part of its net-zero strategy.

Dan-Bunkering logo. Dan-Bunkering launches two-year trainee programme for aspiring marine fuel traders  

Bunker firm is recruiting trainees for an August 2026 start across its European offices.

Tower Bridge, London. Chevron hiring London-based marine fuels marketer with renewable fuels remit  

Applications open until 30 June for role involving the marketing of physical bunker fuels with a focus on Europe.

Burando Energies logo. Burando Energies seeks operator to support Rotterdam bunkering activities  

New hire will be responsible for planning, coordinating and monitoring operational activities across the firm's bunkering business.

Tommy Slette, Bart Vos and Koen Boerdijk. Corvus Energy to supply battery systems for two new Scylla Shipping river cruise vessels  

Norwegian battery supplier extends its partnership with Swiss river cruise operator Scylla Shipping.

Lucent Pathfinder vessel. NYK signs time-charter deal for two dual-fuel LPG-powered VLGCs  

Singapore subsidiary will provide gas carriers to carry Louisiana-produced ammonia to Japan.

Panos Mitrou and Yoshikazu Kondo. MOL wins LR technology award for wind-assisted propulsion on LNG carriers  

Lloyd’s Register honours Mitsui O.S.K. Lines for its Wind Challenger decarbonisation work.