MATTER OF CENTRAL R. CO. OF NEW JERSEY

Bankruptcy No. 401-67.

45 B.R. 1011 (1985)

In the Matter of The CENTRAL RAILROAD COMPANY OF NEW JERSEY, Debtor.

United States District Court, D. New Jersey.

February 8, 1985.


Attorney(s) appearing for the Case

Carpenter, Bennett & Morrissey by Stanley Weiss, Dean R. May, Newark, N.J., for Central Jersey Industries, Inc.

Crummy, Del Deo, Dolan & Purcell by Michael R. Griffinger, Paul R. DeFilippo, Newark, N.J., Rogers & Wells by Donald F. Luke, John M. Quitmeyer, New York City, for Oppenheimer & Co., Inc.

Richard K. Willard, Acting Asst. Atty. Gen. by Michael F. Hertz, Alan E. Kleinburd, Dept. of Justice, Washington, D.C., for the Government.

Irwin I. Kimmelman, Atty. Gen. of New Jersey by Joseph L. Yannotti, Deputy Atty. Gen., Trenton, N.J., for the State of N.J.

Estelle Flynn, Asst. City Atty., Bayonne, N.J., for the City of Bayonne, N.J.

Ball, Janik & Novack by Kenneth M. Novack, Portland, Or., for Messrs. Schnitzer.


OPINION

CLARKSON S. FISHER, Chief Judge.

I. Introduction

A. Factual Background

On March 27, 1967, the Central Railroad Company of New Jersey (CNJ) filed for reorganization under section 77 of the former Bankruptcy Act. Thereafter, CNJ was operated as a railroad by a succession of trustees. On April 1, 1976, Consolidated Rail Corporation (Conrail) acquired virtually all of the CNJ rail system pursuant to the Regional Rail Reorganization...

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