In re Reading Co.

MEMO AND ORDER RE: READING COMPANY TRUSTEES’ PETITION FOR PERMISSION TO DRAW DOWN ESCROWED FUNDS TO MAKE CERTAIN PAYMENTS PRIOR TO CONSUMMATION OF A PLAN OF REORGANIZATION

DITTER, District Judge.

In 1971, Reading Company filed for reorganization under section 77 of the Bank*726ruptcy Act. Thereafter, and pursuant to several orders of this court, escrow accounts were established with certain Philadelphia banks for the deposit of proceeds from the sales of non-real estate assets, including surplus equipment and rail, scrap, and coal. At this time, approximately seven million dollars is being held in…