N.Y. Public Service Law § 119: Reorganization of public utility corporations under the national bankruptcy act

§ 119. Reorganization of public utility corporations under the

national bankruptcy act. Upon determining, after hearing and

investigation, that the outstanding liabilities of a public utility

corporation exceed its assets and that the public interest requires that

such corporation be reorganized in order to enable it to make necessary

improvements and additions to its property and facilities, and in order

to enable it to render adequate public service at reasonable rates, or

otherwise to promote the public interest, and that the officers and

directors of the corporation have failed and neglected to cause the

corporation to be reorganized, the commission may, by order, direct the

officers and directors of the corporation to file a petition, under the

provisions of the act of congress of July first, eighteen hundred

ninety-eight, entitled "An act to establish a uniform system of

bankruptcy throughout the United States," as amended, for the

reorganization of the corporation, and to perform such other acts and to

take such proceedings as may be required in such reorganization

proceeding. Upon the failure or refusal of the officers or the directors

of the corporation to comply with the said order, the commission may

institute a summary proceeding in the supreme court for the enforcement

thereof, in accordance with the procedure provided in this chapter for

the enforcement of orders of the commission.