Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

IN RE PENN CENT. TRANSP. CO.

March 7, 1972

In the Matter of PENN CENTRAL TRANSPORTATION COMPANY, Debtor

Fullam, District Judge.


The opinion of the court was delivered by: FULLAM

FULLAM, District Judge.

 Order No. 78 governs sales of real and personal property involving less than $100,000, and the salvage and re-use of personal property of the Debtor. The Trustees and various other parties in interest now seek certain substantive and procedural revisions in that Order. Moreover, some questions have apparently arisen as to the adequacy of notice of the hearing which resulted in Order No. 78.

 To consider the requested changes, and to afford a further opportunity for all interested persons to be heard, a further hearing has been held. Pursuant to Order No. 474, direct and adequate notice, in person and by publication, has been given to all taxing authorities involved; indeed, many appeared at the hearing and expressed their views.

 The issues raised are many and complex. The taxing authorities seek to have tax claims satisfied from the proceeds of sales, and to expand the definition of tax claims. The Trustees argue for continuation of the practice of escrowing the proceeds, subject to the tax liens, with payment discretionary. Mortgage indenture trustees seek a declaration of administrative claim status for mortgaged salvage used elsewhere, and for any payments of taxes.

 While these matters are being debated and considered, it is essential that the program of sales not be stultified. The form of order proposed by the Trustees permits the sales to continue, but affords protection to all of the interests asserted. However, against the possibility that the definition of "tax claims" may ultimately be enlarged, the proposed order will be modified to insure that sums double the amount of present tax claims as defined in paragraph 3 of Order No. 602 will remain in escrow, not subject to interim withdrawals.

 The above determination is interim in nature pending final resolution of the contentions of the parties.

 ORDER NO. 602

 1. The Trustees or their duly authorized designees are hereby authorized:

 
(a) To convey, from time to time, at private sale or exchange, free from all legal and equitable liens or whatever kind and whenever arising, without notice, for the best prices or values obtainable, such of the property of the Debtor, real or personal, referred to in the Petition for Order No. 78 as may be salable and is not needed by the Trustees in the operation of the railroad or in the conduct of their business; subject, however, to the limitation that the amount involved in any single sale or transaction shall not exceed $100,000;
 
(b) To salvage for reuse any personal property which will be economically useful or valuable in the maintenance or operation of the Debtor's estate or the conduct of the Trustees' business;
 
(c) To scrap any personal property which is no longer economically useful or valuable in the maintenance or operation of the Debtor's estate or the conduct of the Trustees' business;

 Provided, (i) that any such sale, exchange, salvage or scrap transaction would, in the absence of a default, be permissible under the terms of any mortgage constituting a lien on the property sold, exchanged, salvaged or scrapped (but the documentation provided for under such mortgage shall not be required); (ii) that except in accordance with Section 77(o) of the Bankruptcy Act, no such transaction would break the continuity of any line of railway upon which any such mortgage constitutes a lien or eliminate access to any terminal or interchange point of any such ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.