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`1 ~ <br /> <br />4. On November 13, 1990, the Court ordered that Debtors' <br />cases, as well as the case of Debtors' railroad affiliate, <br />Colorado 5 Wyc^ing Railway Company, be jointly administered. <br />5. These Chapter 11 cases may constitute the largest <br />Chapter 11 cases ever filed in the District of Utah and are among <br />the largest Chapter 11 cases filed in the western United States. <br />6. Debtors are, by federal statute, jointly and <br />severally liable for overwhelming pension-related obligations <br />arising under both ERISA and the Internal Revenue Code estimated <br />in excess of $140 million. See 26 U.S.C. § 412(c)(11)(B) and 29 <br />U.S.C. § 1082(c)(11)(B) (pension contributions); 26 U.S.C. <br />§ 4971(e)(2) (penalty excise taxes); 29 U.S.C. § 1362(a) (pension <br />plan termination liability). <br />7. Debtors are unable to continue to fund these pension <br />obligations, including prepetition contributions in the <br />approximate amounts of $12.4 million due in September, 1990, and <br />$1.8 million due in October, 1990, which were not paid. <br />8. Debtors' reorganization cases were commenced in order <br />to prevent the destruction of their businesses through the <br />accrual and enforcement of pension obligations and related <br />penalty excise taxes. If not protected by the automatic stay in <br />bankruptcy, the assets of Debtors would have been subjected to <br />statutory liens for pension related obligations, see 26 U.S.C. <br />§ 412(n)(1) (statutory lien for unpaid pension contributions); 29 <br />U.S.C. § 1368(a) (statutory lien for pension plan termination <br />liability) as well as judgment and execution liens for such <br />obligations. <br />3 <br />