In the Matter of Penn Central Transportation Company. Appeal of United States of America
Court of Appeals for the Third Circuit
1Opinion of the Court
OPINION OF THE COURT
GIBBONS, Chief Judge:
The United States appeals from two district court orders which, in effect, rejected the government’s request for reimbursement in the Penn Central reorganization proceedings. The government advanced an application for reimbursement pursuant to contracts entered into under section 215 of the Regional Rail Reorganization Act of 1973. 45 U.S.C. § 725 (“4R Act”). We will reverse. 1
I
In 1970, Penn Central Transportation Company filed a petition for reorganization. When neither Penn Central nor any other northeastern railroads could achieve an income-based…
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