In Re Michigan Interstate Ry. Co., Inc.

MEMORANDUM OPINION

STANLEY B. BERNSTEIN, Bankruptcy Judge.

Issue:

Is it a proper exercise of this Court’s discretion to appoint the trustee's firm as counsel for the trustee in a railroad reorganization case under Ch. 11 of the Bankruptcy Code?

Analysis:

The trustee, W. Clark Durant, III (Durant or trustee), was appointed by this Court to serve as successor trustee for the Michigan Interstate Railway Company, Inc. (Railway). (As a Ch. 11 case filed under the railroad reorganization provisions of the Code, Durant was one of five persons nominated by the Secretary of the U.S. Department of…