48:12-140 - New company may issue bonds and stock; settling debts of former company - New Jersey Statutes

48:12-140.  New company may issue bonds and stock;  settling debts of former  company    When a new railroad company is organized to purchase and operate the railroad and franchises of any railroad company of this state sold on foreclosure or insolvency proceedings, and has acquired title to such railroad and franchises pursuant to a plan for readjustment of the interest therein of mortgage creditors, other creditors and stockholders and for the representation  of such interest in the bonds, debts or stocks of the new company, the new  company may issue its bonds and stock in conformity with such plan and may  within six months after its organization, compromise, settle or assume the  payment of any debt or liability of the former company on such terms as may be  approved by a majority of the agents or trustees intrusted with the carrying  out of the plan of reorganization.