Railroad Reorganization Under the U.S. Bankruptcy Code: Implications of a Filing by Amtrak

Abstract:

In 1997, Congress enacted the Amtrak Reform and Accountability Act, the goal of which was to promote Amtrak's self-sufficiency with respect to operating funds within five years. The law has provisions directing Amtrak to make plans for its liquidation in the event that it does not reach the goals set forth. It directs the Amtrak Reform council to present Congress a plan for restructuring intercity rail passenger service. It also directed the General Accounting Office to report on the implications of Amtrak's possible liquidation.