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MATTER OF READING CO.

No. 87-1232.

838 F.2d 686 (1988)

In the Matter of READING COMPANY, Debtor. Appeal of CJI INDUSTRIES, INC., formerly known as Central Jersey Industries, Inc.

United States Court of Appeals, Third Circuit.

Decided January 29, 1988.

Attorney(s) appearing for the Case

Howard H. Lewis (argued), Timothy I. McCann, Sprecher, Felix, Visco, Hutchison & Young, Philadelphia, Pa., for appellee.

Stanley Weiss (argued), Carpenter, Bennett & Morrissey, Newark, N.J., for appellant.

Before WEIS, and STAPLETON, Circuit Judges, and COHILL, District Judge.

OPINION OF THE COURT

STAPLETON, Circuit Judge:

This appeal requires us to consider the extent to which the presumption against setoffs in Section 77 railroad reorganizations, articulated in Baker v. Gold Seal Liquors, 417 U.S. 467, 94 S.Ct. 2504, 41 L.Ed.2d 243 (1974), is applicable to cases brought under the Regional Rail Reorganization Act of 1973, 45 U.S.C. § 701 et seq. (1982 & Supp. IV) ("Rail Act...

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