§ 119 — Reorganization of public utility corporations under the national bankruptcy act

New York § 119

• Jurisdiction: New York
• Law PBS: Public Service
• Art. 6: Provisions Affecting Two or More Kinds of the Public Service and the Persons and Corporations Furnishing Such Service

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§ 119. Reorganization of public utility corporations under the\nnational bankruptcy act. Upon determining, after hearing and\ninvestigation, that the outstanding liabilities of a public utility\ncorporation exceed its assets and that the public interest requires that\nsuch corporation be reorganized in order to enable it to make necessary\nimprovements and additions to its property and facilities, and in order\nto enable it to render adequate public service at reasonable rates, or\notherwise to promote the public interest, and that the officers and\ndirectors of the corporation have failed and neglected to cause the\ncorporation to be reorganized, the commission may, by order, direct the\nofficers and directors of the corporation to file a petition, under the\nprovisions of the act of congress of July first, eighteen hundred\nninety-eight, entitled "An act to establish a uniform system of\nbankruptcy throughout the United States," as amended, for the\nreorganization of the corporation, and to perform such other acts and to\ntake such proceedings as may be required in such reorganization\nproceeding. Upon the failure or refusal of the officers or the directors\nof the corporation to comply with the said order, the commission may\ninstitute a summary proceeding in the supreme court for the enforcement\nthereof, in accordance with the procedure provided in this chapter for\nthe enforcement of orders of the commission.\n