MATTER OF PENN CENTRAL TRANSP. CO.

No. 70-347.

431 F.Supp. 671 (1977)

In the Matter of PENN CENTRAL TRANSPORTATION COMPANY, Debtor. In re TRUSTEES' PROPOSED COMPROMISE OF PERSONAL INJURY AND TAX CLAIMS.

United States District Court, E. D. Pennsylvania.

As Amended April 25, 1977.


Attorney(s) appearing for the Case

Carl Helmetag, Jr., Andrew P. Corcoran, Jr., John J. Ehlinger, Jr., Philadelphia, Pa. and Covington & Burling by Charles A. Horsky, Washington, D.C., for the Trustees, Penn Cent. Transp. Co.

Gratz, Tate, Spiegel, Ervin & Ruthrauff by Spencer Ervin, Jr., Philadelphia, Pa. and Sullivan & Worcester by Morris Raker, Boston, Mass., for Richard Joyce Smith, Trustee, New York, New Haven & Hartford R. Co.

Edith I. Spivack, Executive Asst. Corp. Counsel, New York City, for the City of New York.

John H. Broadley, Dept. of Justice, Washington, D.C., for the United States.

Paul W. Beltz, P.C. by Paul W. Beltz, Buffalo, N.Y., for Oscar Collins, Gary Gresock, James Friss, Albert Heim, and Henry Van Vugt.

Marsh, Day & Calhoun by Peter Wilkinson, Bridgeport, Conn., for Citytrust, Trustee.

Winne & Banta by Peter G. Banta, Hackensack, N.J., for Peoples Trust of New Jersey, Harlem Second Indenture Trustee.

Walsh & Frisch by E. Roger Frisch, New York City, for Mahoning Coal R. Co. and Mahoning & Shenango Valley R. Co.

Thomas P. Zolezzi, Asst. Atty. Gen., Albany, N.Y., for the State of New York.

Fell, Spalding, Goff & Rubin by Richard M. Imperatore, Philadelphia, Pa., for Ohio Prosecuting Attys. Assn.

Herbert K. Glickman, Deputy Atty. Gen., Trenton, N.J., for the State of New Jersey.

John K. Godre, Detroit, Mich., for County of Wayne, Michigan.

Carl Rashid, Jr., and Victor G. Marrocco, Detroit, Mich., for City of Detroit.

Pepper, Hamilton & Scheetz by Michael W. Freeland, Philadelphia, Pa., for Consolidated Rail Corp.

David Berger, P.A., by Daniel Berger, Philadelphia, Pa., for Penn Cent. Co.

Dan R. Pellegrini, Pittsburgh, Pa., for City of Pittsburgh.

Kelley, McCann & Livingstone by Margaret Anne Foster, Cleveland, Ohio, for Bd. of Ed., Cleveland City School District.

Jon F. Oster, Deputy Atty. Gen. of Maryland and Carl E. Eastwick, Asst. Atty. Gen. of Maryland, Baltimore, Md., for State of Maryland and certain taxing authorities of Maryland.

Bruce C. Fishelman, Jersey City, N.J., for City of Jersey City.

Ralph Feigelson, Union City, N.J., for Township of North Bergen, N.J.

George Campan, for Township of Weehawken, N.J.

Walsh & Frisch by Jerome K. Walsh, New York City, for George Betz and Robert Valimont, trustees of certain secondary debtors.

John B. Wirtz, Canton, Ohio, for Stark County, Ohio.

Ronald Glantz, Lincoln, R.I., for City of Providence, Rhode Island.

Goodman & Ewing by William H. Ewing, Philadelphia, Pa., for Fort Wayne & Jackson R.R. and trustees of secondary debtors.

Henry O. Sitler, Indianapolis, Ind., for the State of Indiana.

Susan Bring, Asst. Corp. Counsel, Buffalo, N.Y., for the City of Buffalo, N.Y.

Willkie, Farr & Gallagher by Walter H. Brown, Jr., New York City, for Institutional Investors, Penn Cent. Group.


MEMORANDUM AND ORDER NO. 2921 AND 2922

FULLAM, District Judge.

The Trustees of the Debtor have filed a proposed Plan of Reorganization. A major aspect of the Plan is the treatment accorded the very large highest priority administration claims of the United States. After extensive discussions, the United States and the Trustees agreed to a method for treating the Government's claims which adequately protects the interest of the United States, and also permits...

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