Ideologies in America (1983), cited in Baird, p. 24.
57. Ibid., § 1129(b)(2)(B)(ii), the so-called
"absolute priority" rule.
40. U.S. General Accounting Office, "Issues Associated
with a Possible Amtrak Liquidation," p. 12.
58. Pub. L. 105-134, §415(b) and (c), which appear
in a footnote to 49 U.S.C. § 24304.
41. Bankruptcy Code, § 1171(b). The priority is
narrowly drawn, however, and depends on the
59. See House Committee on Transportation and
existence of a current debt fund from which a
Infrastructure, "Hearing on Current Status and
creditor expected to be paid. It is unclear whether
Future Prospects of Amtrak and High Speed
Amtrak has in fact created such a fund.
Rail," Memorandum, July 25, 2001, p. 3; and
"Lindner Scoffs at Amtrak Offer," Cincinnati
42. Phyllis F. Scheinberg, "Intercity Passenger Rail:
Enquirer, December 17, 2000.
Amtrak's Financial Crisis Threatens Continued
Viability," Statement before the U.S. Senate
60. District of Columbia Code, § 29-101.05.
Committee on Finance, April 23, 1997, Appendix V,
Amtrak's Working Capital Surplus/Deficient, Fiscal
61. Bankruptcy Code, §§ 547, 548.
Years 198796.
62. Ibid., § 363(f).
43. See In re Albany Partners, Ltd., 749 F.2d 670
63. Ibid., § 1167.
(11th Cir. 1984).
64. A similar table will not be provided for real
44. In the case of debtors with 12 or more credi-
estate or other assets because they are more com-
tors, an involuntary bankruptcy petition may be
plex in nature and cannot be fairly covered in a
commenced by 3 creditors holding claims that in
report of this scope.
the aggregate exceed the value of any collateral
securing the same by at least $10,775. In the case
65. Bankruptcy Code, § 362. Sec. 1168 of the
of debtors with fewer than 12 creditors, a single
Bankruptcy Code provides special rules for
creditor holding a claim that exceeds any security
parties with an interest in railroad rolling
therefor by at least such amount may file such a
stock. Under that section, a trustee in a rail-
petition. 11 U.S.C. § 303(b).
road case must, within 60 days after the filing
of a Chapter 11 petition, affirmatively agree to
45. Bankruptcy Code, § 109(b)(1).
perform the railroad's obligations under leas -
46. 11 U.S.C. §§ 116174.
es or conditional sale agreements covering
railroad rolling stock and make payments to
47. Bankruptcy Code, § 303(h).
cure any defaults. If it fails to do so, creditors
who hold such interests may repossess and
48. Ibid., § 362.
sell their collateral without obtaining court
permission to do so.
49. Ibid., § 362(b)(4).
66. U.S. General Accounting Office, "Issues
50. Title 49 U.S.C., Subtitle IV.
Associated with a Possible Amtrak Liquidation,"
p. 2.
51. Bankruptcy Code, § 362(d)(2).
67. Amtrak, "Amtrak Annual Report 2000," p. 13,
52. Ibid., § 547(f).
www.Amtrak.com.
53. Such as, in the case of an individual, a transfer
68. "Amtrak Facts," undated, www.Amtrak.com
of substantial assets by a husband to his wife for
(downloaded January 23, 2002).
no or little payment. See In re Palavis, 233 B.R. 1
(Bk. D. Mass. 1999).
69. Long Island Rail Road Online, "Facts and
Figures," http://www.mta.nyc.ny.us/lirr (down-
54. Bankruptcy Code, § 548.
loaded January 23, 2002).
55. Pursuant to Bankruptcy Code, § 544(b), a
70. Metro-North Railroad Online, "Frequently
trustee in bankruptcy or a debtor in a Chapter 11
Asked Questions," undated, http://www.mta.nyc.
case may also use state fraudulent conveyance
ny.us/mnr (downloaded January 23, 2002).
statutes to recover transfers made more than a
year prior to the filing of a bankruptcy petition if
71. Frank Malone, Public relations spokesman,
a state limitations period is longer.
Metra Commuter Rail, telephone interview with
Vranich, January 24, 2002.
56. Bankruptcy Code, § 365.
16