In re Penn Central Transportation Co.

OPINION

FULLAM, District Judge.

The Trustees have petitioned the Court for authorization to expend substantial sums of money and to incur certain obligations in order to purchase the fixed assets of the Boston & Providence Railroad Corporation, in implementation of a plan for the reorganization of that railroad. The proposed purchase would require the Trustees to make immediate cash payments totalling $2,810,000, and to incur indebtedness to the United States in the aggregate sum of $1,-925.000, with interest at 4/2%, payable in annual instalments over a period of seven years. In exchange, the…