Canada has suspended the operating licence of the railway company involved in the fuel train disaster in Quebec last month.
The Canadian Transportation Agency said the company did not have enough third-party liability insurance.
The BBC reports the order covers both the Montreal, Maine & Atlantic Railway and its Canadian subsidiary.
Forty seven people were killed in Lac-Megantic after a train carrying crude oil derailed and exploded in the town on 6 July.
The licence suspension becomes effective on 20 August.
The CTA said MMA did not have adequate third-party liability insurance, one of the requirements to operate Canada.
The BBC reports MMA filed for bankruptcy protection in Canada and the United States last week in the wake of the derailment.
The company said its insurance was not sufficient to cover liabilities of up to C$25 million ($US24.2 million), when the clean-up costs may well exceed C$200 million.
The train, with 72 tankers full of crude oil, was parked uphill from Lac-Megantic and was unattended when it began rolling out of control into the town. Several tankers exploded, destroying 40 buildings and forcing about 2000 residents to flee their homes.
