Mellon Bank, N.A. v. Delaware & Hudson Railway Co. (In Re Delaware & Hudson Railway Co.)

MEMORANDUM OPINION

LATCHUM, Senior District Judge.

On January 15, 1991, the United States Bankruptcy Court for the District of Delaware entered an order permitting the Trustee of the bankrupt Delaware and Hudson Railway Company (“D & H Railway”) to assume D & H Railway’s contracts with the State of New York and assign them to D & H Corporation (“DHC”), 1 which subsequently purchased D & H Railway’s assets and undertook continued operation of its rail lines. The bankruptcy court’s order also awarded certain amounts to New York State to compensate it for D & H Railway’s defaults under the…