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MATTER OF MORRISTOWN & ERIE R. CO.

No. 82-5034.

677 F.2d 360 (1982)

In the Matter of The MORRISTOWN & ERIE RAILROAD COMPANY, Debtor. Appeal of MANDELBAUM & MANDELBAUM, Proponents of a Plan of Reorganization and a Party in Interest.

United States Court of Appeals, Third Circuit.

Decided May 10, 1982.

Attorney(s) appearing for the Case

David N. Ravin, Ravin & Kesselhaut, West Orange, N. J., for appellant Mandelbaum & Mandelbaum; Jeffrey H. Fisch (argued), Bernard Schenkler, Mark D. Silverschotz, West Orange, N. J., on brief.

Roger C. Ward (argued), Pitney, Hardin, Kipp & Szuch, Morristown, N. J., for appellee Morristown & Erie R. Co.; Robert A. Recio, Morristown, on brief.

Paul R. DeFilippo (argued), Crummy, Del Deo, Dolan & Purcell, Newark, N. J., for appellee John J. Francis, trustee.

J. Paul McGrath, Asst. Atty. Gen., Civ. Div., Jane A. Restani, Alan A. Kleinburd (argued), U. S. Dept. of Justice, Washington, D. C., for United States of America, intervenor.

Before SEITZ, Chief Judge, ADAMS, Circuit Judge and STAPLETON, District Judge.

OPINION OF THE COURT

ADAMS, Circuit Judge.

In this appeal, we consider the authority of a district court, sitting as a reorganization court, to permit interim operation of a debtor's rail service by a party that has applied for, but not yet received, final approval from the Interstate Commerce Commission (ICC) to purchase the debtor railroad. We determine that such authority is provided for in the Milwaukee Railroad Restructuring Act of 1979 (MRRA), but...

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