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PENN CENTRAL FILES LAWSUIT

 PENN CENTRAL FILES LAWSUIT
 CINCINNATI, March 26 /PRNewswire/ -- The Penn Central Corporation


(NYSE: PC) announced that it has filed a lawsuit seeking to enjoin the U.S. Government, Conrail and other parties from prosecuting claims against Penn Central for environmental cleanup at a railyard in Paoli, Pa. The lawsuit was filed in a special U.S. Court that was created by the Regional Rail Reorganization Act of 1973 to oversee the transfer and valuation of the railroad properties of Penn Central's railroad predecessor, Penn Central Transportation Company (PCTC).
 Penn Central believes that the Paoli environmental claims are barred by (1) the terms by which the Paoli Yard was transferred by PCTC pursuant to the Rail Act to Conrail "as is" in 1976; (2) the 1980 settlement of the Valuation Case proceedings to determine compensation to be paid by the U.S. Government for the railroad properties transferred by PCTC pursuant to the Rail Act; and (3) the U.S. Constitution.
 The action was filed as a result of the U.S. Supreme Court's recent refusal to review a Third Circuit Court decision that Paoli Yard environmental claims against Penn Central were not discharged by the 1978 bankruptcy orders involving PCTC.
 Carl H. Lindner, chairman and chief executive officer of Penn Central, said, "We have filed this lawsuit because we believe it is unfair and illegal for Penn Central to be held accountable to the U.S. Government for environmental problems which the Government knew to exist at the Paoli Yard during the Penn Central Valuation Case proceedings. The notion that Penn Central might be responsible is particularly egregious because Penn Central was not paid in the Valuation Case settlement to assume liability for these known problems."
 Penn Central operates businesses primarily in the areas of specialty property and casualty insurance and defense services.
 -0- 3/26/92
 /CONTACT: David H. Street, senior vice president-finance of The Penn Central Corporation, 513-579-6600/
 (PC) CO: The Penn Cental Corporation ST: Ohio IN: ARO SU:


KK -- CL008 -- 1889 03/26/92 10:38 EST
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Publication:PR Newswire
Date:Mar 26, 1992
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