45 U.S.C. § 915 : US Code - Section 915: Court approved abandonment and sales in pending cases

Search 45 U.S.C. § 915 : US Code - Section 915: Court approved abandonment and sales in pending cases

(a) Abandonment of lines of railroad under Bankruptcy Act
Notwithstanding any other provision of law, in any case pending
under section 77 of the Bankruptcy Act on November 4, 1979, the
court may authorize the abandonment of lines of railroad pursuant
to section 1170 of title 11. Pending the expiration of the time for
appeal of an abandonment order or the determination of any such
appeal, the court may authorize the termination of service on a
line to be abandoned, and the order authorizing such termination
may not be stayed. In authorizing any abandonment pursuant to this
section, the court shall require the carrier to provide a fair
arrangement at least as protective of the interests of employees as
that required under section 11347 (!1) of title 49.
(b) Sale or transfer of lines of railroad under Bankruptcy Act
(1) Notwithstanding any other provision of law, in any case
pending under section 77 of the Bankruptcy Act on November 4, 1979,
the court may authorize the sale or transfer of a line of railroad
to be used in continued rail operations, subject to the approval of
the Commission under paragraph (2) of this subsection, if the
application with respect to such sale or transfer is filed with the
Commission on or after November 1, 1979. In authorizing any such
sale or transfer, the court shall provide a fair arrangement at
least as protective of the interests of employees as that required
under section 11347 (!1) of title 49.
(2) The court described in paragraph (1) may not authorize a sale
or transfer pursuant to such paragraph unless an appropriate
application with respect to such sale or transfer is initiated with
the Commission and, within such time as the court may fix, not
exceeding 180 days, the Commission, with or without a hearing, as
the Commission may determine, and with or without modification or
condition, approves such application, or does not act on such
application. Any action or order of the Commission approving,
modifying, conditioning, or disapproving such application is
subject to review by the court only under sections 706(2)(A),
706(2)(B), 706(2)(C), and 706(2)(D) of title 5.
(3)(A) If a person has made or makes an offer to acquire from a
carrier subject to liquidation a rail line or lines over which no
service is provided by that carrier, and that offer has been or is
rejected by the trustee in bankruptcy of such carrier, such person
may submit an application to the Commission seeking approval of
such person's acquisition of such line or lines. A copy of any such
application shall be filed simultaneously with the court.
(B) The Commission shall, within 15 days after the filing of an
application under subparagraph (A) of this paragraph, determine
whether the applicant -
(i) is a financially responsible person; and
(ii) has made a bona fide offer to acquire the line or lines
under reasonable terms.
(C)(i) If the Commission's determination under subparagraph (B)
of this paragraph is affirmative with respect to the matters
referred to in clauses (i) and (ii) of such subparagraph, the
applicant and the trustee in bankruptcy (hereafter in this
paragraph referred to collectively as the "parties") shall enter
into negotiations with respect to terms for the acquisition of the
line or lines applied for. If the parties at any time agree on such
terms, a request for approval of the acquisition shall be filed
with the Commission and the court. If the parties are unable to
agree to such terms within 30 days after the date of the
Commission's determination under subparagraph (B) of this
paragraph, either party may, within 60 days after the expiration of
such 30-day period, request the Commission to prescribe terms for
such acquisition, including compensation for the line or lines to
be acquired. The Commission shall prescribe such terms within 60
days after any such request is made. The terms prescribed by the
Commission shall be binding upon both parties, subject to court
review as provided in subparagraph (D) of this paragraph, except
that the applicant may withdraw its offer within 10 days after the
Commission prescribes such terms.
(ii) If more than one applicant has requested under this
subparagraph that the Commission prescribe the terms of acquisition
for the same or overlapping lines or portions of such lines, the
Commission shall prescribe terms for such acquisition which it
determines best serve the public interest.
(D)(i) Within 15 days after the Commission prescribes terms under
subparagraph (C) of this paragraph, the Commission shall transmit
such terms to the court, unless the offer is withdrawn under such
subparagraph. Notwithstanding any other provision of law, the court
shall, within 60 days after such transmittal, approve the
acquisition under terms prescribed by the Commission if the
compensation for the line or lines is not less than that required
as a constitutional minimum.
(ii) Except as provided in this subparagraph, no action shall be
taken by the court which would prejudice the acquisition which is
the subject of an application under this paragraph.
(E) The Commission shall require that any person acquiring a line
or lines under this paragraph use, to the maximum extent
practicable, employees or former employees of the carrier subject
to liquidation in the operation of service on such line or lines.
(F) No person acquiring a line under this paragraph may transfer
or discontinue service on such line prior to the expiration of 4
years after such acquisition.
(G) The Commission shall, within 45 days after January 14, 1983,
prescribe such regulations and procedures as are necessary to carry
out the provisions of this paragraph.
(H) As used in this paragraph, the term -
(i) "carrier subject to liquidation" means a carrier which, on
January 14, 1983, was the subject of a proceeding pending under
section 77 of the Bankruptcy Act or under subchapter IV of
chapter 11 of title 11 and which has been ordered by the court to
liquidate its properties;
(ii) "the court" means the court having bankruptcy jurisdiction
over the carrier subject to liquidation; and
(iii) "financially responsible person" means a person capable
of compensating the carrier subject to liquidation for the
acquisition of the line or lines proposed to be acquired and able
to cover expenses associated with providing service over such
line or lines for a period of not less than 4 years.
(4) Pending review of an application by the Commission pursuant
to paragraph (2) of this subsection, the court described in
paragraph (1) may, on a preliminary basis, authorize the sale or
transfer proposed in such application. The court may permit the
purchasing carrier to operate interim service over the lines to be
purchased, and in operating such service it shall use employees of
the carrier subject to the bankruptcy proceeding to the extent such
purchasing carrier deems necessary for the operation of such
service.
(c) Judicial review
Any action or order of the Commission approving, modifying,
conditioning, or disapproving an application for the sale or
transfer of rail property that is filed with the Commission before
November 1, 1979, in connection with a case pending under section
77 of the Bankruptcy Act on November 4, 1979 -
(1) is subject to review by the court only under sections
706(2)(A), 706(2)(B), 706(2)(C), and 706(2)(D) of title 5; and
(2) may not be stayed by the Commission.
(d) Authority of bankruptcy court
The authority of the bankruptcy court to authorize abandonments,
sales, and transfers of lines of the Milwaukee Railroad shall be
governed by the provisions of section 904 of this title, rather
than the provisions of this section.
(e) Effect on priorities and timing of employee protection payments
Nothing in this section shall be deemed to affect the priorities
or timing of payment of employee protection which might have
existed in the absence of this chapter.