Page:United States Statutes at Large Volume 92 Part 2.djvu/1364

 92 STAT. 2644

PUBLIC LAW 95-598—NOV. 6, 1978

had been appointed by a Federal court on the date of the order for relief under this title shall be entitled to such priority in the case under this chapter. 11 USC 1172. § 1172. Contents of plan (a) In addition to the provisions required or permitted under section 1123 of this title, a plan— (1) shall specify the extent to and the means by which the debtor's rail service is proposed to be continued, and the extent to which any of the debtor's rail service is proposed to be terminated; and (2) may include a provision for— ' (A) the transfer of any or all of the operating railroad lines of the debtor to another operating railroad; or (B) abandonment of any railroad line in accordance with section 1170 of this title. (b) If, except for the pendency of the case under this chapter, • transfer of, or operation of or over, any of the debtor's rail lines by an entity other than the debtor or a successor to the debtor under the plan would require approval by the Commission under a law of the United States, then a plan may not propose such a transfer or such operation unless the proponent of the plan initiates an appropriate application for such a transfer or such operation 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. 11 USC 1173. § 1173. Confirmation of plan (a) The court shall confirm a plan if— (1) the applicable requirements of section 1129 of this title have been met; (2) each creditor or equity security holder will receive or retain under the plan property of a value, as of the effective date of the plan, that is not less than the value of property that each such creditor or equity security holder would so receive or retain if all of the operating railroad lines of the debtor we^-e sold, and the proceeds of such sale, and the other property of the estate, Ante, p. 2603. were distributed under chapter 7 of this title on such date; (3) in light of the debtor's past earnings and the probable prospective earnings of the reorganized debtor, there will be adequate coverage by such prospective earnings of any fixed charges, such as interest on debt, amortization of funded debt, and rent for leased railroads, provided for by the plan; and (4) the plan is compatible with the public interest. (b) If the requirements of subsection (a) of this section are met with respect to more than one plan, the court shall confirm the plan that is most likely to maintain adequate rail service in the public interest. 11 USC 1174. § 1174. Liquidation Notice and On request of a party in interest and after notice and a hearing, hearing. the court may, or, if a plan has not been confirmed under section 1173 of this title before five years after the date of the order for relief, the court shall, order the trustee to cease the debtor's operation and to collect and reduce to money all of the property of the estate in the same manner as if the case were a case under chapter 7 of this title.

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