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IN THE MATTER OF PENN CENT. TRANSP. CO.

Nos. 76-1083, 76-1122.

547 F.2d 208 (1976)

In the Matter of PENN CENTRAL TRANSPORTATION COMPANY, Debtor. Appeal of CITY OF NEW YORK, in No. 76-1083. Appeal of TRAVE LODGE INTERNATIONAL, INC., in No. 76-1122.

United States Court of Appeals, Third Circuit.

Decided December 28, 1976.

Attorney(s) appearing for the Case

W. Bernard Richland, Corp. Counsel, New York City, for appellant, City of New York; Stanley Buchsbaum, Edith I. Spivack, Cornelius F. Roche, New York City, of counsel.

Terrence M. Quirin, Philadelphia, Pa., for appellee, Trustees of Penn Cent. Transp. Co.

Carl Helmetag, Jr., Philadelphia, Pa., Gen. Counsel for appellee, Penn Cent. Transp. Co.

Hughes Hubbard & Reed, New York City, for appellant, TraveLodge Intern., Inc.; Kalman A. Oravetz, William M. Barron, New York City, of counsel.

Demov, Morris, Levin & Shein, New York City, for Washington Federal Sav. and Loan Ass'n; Irving Bizar, Robert S. Ordman, of counsel.

Before ADAMS and WEIS, Circuit Judges, and GERRY, District Judge.

OPINION OF THE COURT

ADAMS, Circuit Judge.

The basic conflict in these appeals is between two financially troubled entities: the trustees of the Penn Central Transportation Company1 and the City of New York. Specifically, we are called upon to review Order No. 2091 of the Penn Central Reorganization Court, in which the district court (1) enjoined the City of New York from proceeding with an in rem action to foreclose a tax lien...

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