Matter of Reading Co.

OPINION RE APPROVAL OF THE PLAN OF REORGANIZATION

DITTER, District Judge.

HISTORY OF THE READING RAILROAD REORGANIZATION

Once the largest corporation in the world, the power and financial base of the Reading Company has eroded steadily since the demand for rail as a form of passenger and freight transportation diminished. Reading’s income fell short of its expenses and finally, on November 23, 1971, it filed for reorganization under section 77 of the Bankruptcy Act, 11 U.S.C. § 205, thus becoming a part of the nation’s rail crisis which eventually found seven other major railroads in the…