World Fuel Services to pay $110 mln in Lac-Megantic settlement

Mon Jun 8, 2015 4:53pm EDT
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June 8 (Reuters) - World Fuel Services Corp has agreed to contribute $110 million to a compensation fund for victims of the Lac-Megantic rail disaster as part of a settlement with the Montreal, Maine and Atlantic Railway and its bankruptcy trustees.

A subsidiary of World Fuel Services sold the light crude oil that was on the runaway train when it crashed in the center of the town of Lac-Megantic, exploding and killing 47 people. The company said it expects insurance will cover the payment.

Victims of the disaster agreed to a nearly $200 million settlement with some of the other companies involved, including the insolvent Montreal Maine and Atlantic, in January.

At the time, a lawyer representing the victims said he would continue to pursue claims against World Fuel Services and other companies. Closely held Irving Oil agreed in March to contribute C$75 million ($61 million) to the compensation fund.

"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 Chief Executive Michael Kasbar in a release.

($1 = $1.24 Canadian) (Reporting by Allison Martell; Editing by Leslie Adler)