In Re Morristown & Erie Railroad Company. Appeal of Morristown & Erie Railway, Inc.

OPINION OF THE COURT

STAPLETON, Circuit Judge:

This appeal raises an issue concerning the scope of a district court’s injunctive powers under section 105(a) of the Bankruptcy Code. The trustee in bankruptcy, seeking to expedite the bankruptcy proceedings, sought an order from the district court requiring the Morristown & Erie Railway (the Railway) to supply financial assurance and apply for a permit from the New Jersey Department of Environmental Protection (DEP) that would allow the trustee to convey certain real property of the debtor’s to the Railway. The district court issued a mandatory…