In 1976, the Pennsylvania Railroad Wilkes-Barre Branch and the Delaware Lackawanna and Western Railroad main line was taken over by Conrail due to Penn Central and the Erie Lackawanna Railway being converted into Conrail, with trackage rights assigned to the Delaware and Hudson Railway. The D&H acquired the majority of the PRR Wilkes-Barre Branch and the Scranton to Binghamton trackage of the Delaware, Lackawanna and Western main line (which contains the Nicholson Cutoff) in the early 1980s and combined it with part of their main line from Binghamton to Schenectady, New York, to form the new Delaware and Hudson South Line, the D&H main line continues in existence now running from Schenectady to Montreal. The D&H was acquired by the Guilford Rail System (now Pan Am Railways), a railroad owned by Guilford Transportation Industries (now Pan Am Systems). Now a Guliford property, the D&H South Line was still a D&H property. The corporate structure was Guilford Transportation as the parent company, Guilford Rail as direct subsidiary and owner of the D&H and the D&H as indirect subsidiary. The D&H went bankrupt while owned by Guilford Transportation's Guilford Rail and during the bankruptcy, the New York, Susquehanna and Western Railway ran its trains on the D&H South Line and the rest of the D&H. The New York, Susquehanna and Western was ordered to operate the D&H until a new buyer was found for the D&H.