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This document summarizes a court case regarding whether a railroad company undergoing reorganization could claim a setoff against another railroad company. 1. The court considered whether the presumption against setoffs in railroad reorganization cases under Section 77, as established in Baker v. Gold Seal Liquors, also applied to reorganizations under the Regional Rail Reorganization Act. 2. The district court had allowed a setoff in this case involving two railroads, Reading Company and CJI Industries

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