The Caisse de dépôt et placement du Québec says its stake in the Montreal, Maine & Atlantic (MM&A) Railway Corporation is worth virtually nothing.
The Caisse became a minority shareholder when MM&A was founded by Edward Burkhardt in 2003.
Its initial investment was $14.7 million, comprised of $7 million in share capital and a $7.7 million loan. The loan was fully repaid in 2011.
As of Dec. 31, 2012, the Caisse estimates the value of its 12.77% stake in MM&A “is practically nil (about $1,000).”
“All the thoughts of the Caisse’s employees are with the people of Lac-Mégantic and their families,” says a statement from the fund manager. It plans on donating $100,000 to the Red Cross to help the town’s residents.
On Saturday morning, a train belonging to the railway derailed in Lac-Mégantic, resulting in an explosion and fires that destroyed part of the Quebec town. As of Tuesday morning, authorities say 13 people have died and dozens are still missing.