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IN RE DELAWARE AND HUDSON RY. CO.

Civ. A. No. 91-115-JLL.

129 B.R. 388 (1991)

In re DELAWARE AND HUDSON RAILWAY COMPANY, Debtor. MELLON BANK, N.A., Appellant, and New York State Department of Transportation, Appellant and Cross-Appellant, v. DELAWARE AND HUDSON RAILWAY COMPANY, and United States of America, Appellees.

United States District Court, D. Delaware.

June 19, 1991.

Attorney(s) appearing for the Case

R. Judson Scaggs, Jr. of Morris, Nichols, Arsht & Tunnell, Wilmington, Del.; Rudy A. Fabian of Reed, Smith, Shaw & McClay, Pittsburgh, Pa., of counsel, for appellant Mellon Bank, N.A.

Regina A. Iorii of Ashby, McKelvie & Geddes, Wilmington, Del.; Leona D. Jochnowitz, New York State Dept. of Transp., Albany, N.Y., of counsel, for appellant and cross-appellant New York State Dept. of Transp.

Joanne B. Wills of Morris, James, Hitchens & Williams, Wilmington, Del.; Charles H. White, Jr., and Bethany J. Vazzana of Hazel & Thomas, P.C., Washington, D.C., of counsel, for appellee Trustee of Delaware and Hudson Ry. Co.

Ellen W. Slights, Asst. U.S. Atty., Wilmington, Del; Alan E. Kleinburd, Dept. of Justice, Washington, D.C., of counsel, for appellee the U.S.

MEMORANDUM OPINION

LATCHUM, Senior District Judge.

On January 15, 1991, the United States Bankruptcy Court for the District of Delaware entered an order permitting the Trustee of the bankrupt Delaware and Hudson Railway Company ("D & H Railway") to assume D & H Railway's contracts with the State of New York and assign them to D & H Corporation ("DHC"),1 which subsequently purchased D & H Railway's assets and undertook...

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