In re Penn Central Transportation Co.
In re Penn Central Transportation Co.
Opinion of the Court
OPINION OF THE COURT
Appellants, calling themselves Penn-Central Bondholders Protective Committee, appeal from the decision of the Reorganization Court (United States District Court for the Eastern District of Pennsylvania) which on two occasions denied their petition to intervene generally in this bankruptcy matter. In the brief for appellants it is said under “Facts” that appellants are bondholders of the bankrupt “in the amount of approximately Fifty Thousand ($50,000.) Dollars”. Later on in the brief for appellants the second petition for intervention alleges that they are bondholders of the bankrupt and that their total holdings amount “to Forty Two Thousand ($42,000.00) Dollars”. It is stated on behalf of the bankrupt’s trustees that appellants own $42,000 in bonds of the
The Court in this discretionary problem wisely insisted that representative intervenors, covering all of the various types of the bankrupt’s creditors, be allowed to intervene. This action materially helps the entire proceeding to continue to move forward to as speedy conclusion as possible under the circumstances. See In Matter of Central Railroad Company of New Jersey, 429 F.2d 507 (3rd Cir. 1970), cert. den. Bondholders Protective Comm. v. Mortgage Bondholders Protective Comm., 401 U.S. 938, 91 S.Ct. 931, 28 L.Ed.2d 218 (1971); Blumgart v. St. Louis-San Francisco Railway Co., 94 F.2d 712, 716 (8th Cir. 1938); In re Denver & R. G. Western R. Co., 13 F. Supp. 821, 824 (D.C.Colo. 1936); In re Central of Georgia Ry. Co., 55 F.Supp. 310, 313 (S.D.Georgia 1944). None of the cases cited on behalf of appellants sustains its theory of general intervention under the facts before us. It will be remembered that where any creditor considers that it has a particular problem which warrants being specially presented to the Bankruptcy Court, the latter will pass upon the merits of such request.
In the circumstances before us, Judge Fullam acted properly and well within his discretion. For the reasons expressed in this opinion, the orders 139 and 309 denying appellants’ petitions to intervene generally in these proceedings are affirmed.
Reference
- Full Case Name
- In the Matter of PENN CENTRAL TRANSPORTATION COMPANY, Debtor Appeals of PATENTS MANAGEMENT CORPORATION, in No. 71-1264. Appeals of ISRAEL PATENTS CORPORATION, in No. 71-1834
- Cited By
- 1 case
- Status
- Published