in a reorganization plan; rather, to the extent the City's position proves meritorious, its position will be fully vindicated by payment of the appropriate amount within a reasonably brief time after the sale.
ORDER NO. 2315
AND NOW, this 14th day of April, 1976, upon consideration of the Petition of Trustees for Authority to Convey their Leasehold Interest in Real Estate in Brooklyn, New York, to A & G Plastics Corporation (Document No. 9465) (the Petition), it is hereby ORDERED:
1. The Trustees or their duly-authorized designees are hereby authorized to convey, at private sale, free and clear from all liens and encumbrances, their leasehold interest in the properties described in the Petition for the consideration and on the terms set forth therein, and to execute and deliver any documents necessary to effectuate said transaction.
2. The liens upon the subject property, including the lien of the Pennsylvania Tunnel and Terminal Railroad Company Mortgage (the mortgagees having consented thereto), shall attach, at the time of sale, in the order of their respective priorities, to the net proceeds of sale and to any income or interest earned thereon.
3. The net proceeds of sale of the subject properties, after deduction of the expenses of sale, shall be deposited promptly upon receipt by the Trustees, subject to all liens and claims thereon, with Provident National Bank, Philadelphia, Pennsylvania, to be held by it, in a separate account, subject to further order of this Court, and invested at the discretion of the Trustees, or their duly-authorized designees and to the extent feasible in certificates of deposit of any bank or trust company or short-term securities of the United States Government or any agency thereof. Any income on said account shall be held in said account and invested in like manner.
4. The Trustees shall proceed promptly to obtain a determination, by agreement or otherwise, of the amount of taxes owing to the City of New York allocable to the 5.02-acre parcel in question. Thereafter, upon application by the City of New York, by the Trustees, or both, this Court will direct immediate payment to the City of New York of such taxes, or such portion of said taxes, the lien of which could not, without such payment, be divested under § 77(o) of the Bankruptcy Act, or in the absence of a decision of that issue.
5. This Order is without prejudice to the contentions of any of the parties with respect to whether this Court does or does not have jurisdiction over properties of non-bankrupt subsidiaries which have leased their properties to the Debtor.
John P. Fullam / J.
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