[Federal Register Volume 77, Number 121 (Friday, June 22, 2012)]
[Notices]
[Pages 37740-37741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-15287]
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DEPARMENT OF TRANSPORATION
Surface Transportation Board
[Docket No. MCF 21045 \1\]
Stagecoach Group plc and Coach USA, Inc., et al.--Acquisition of
Control of Assets--American Coach Lines of Atlanta, Inc.; CUSA AT, LLC;
CUSA AWC, LLC; CUSA ELKO, LLC; CUSA, KBC, LLC; CUSA PCSTC, LLC; CUSA
PRTS, LLC; CUSA RAZ, LLC; Dillon's Bus Service, Inc.; and Lakefront
Lines, Inc.
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\1\ A request for interim approval under 49 U.S.C. 14303(i) was
included in this filing (Docket No. MCF 21045 TA). In a decision
served on June 19, 2012, interim approval of the proposed finance
transaction was granted, effective on the decision's date of
service.
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AGENCY: Surface Transportation Board, DOT.
ACTION: Notice of Finance Application.
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SUMMARY: On May 25, 2012, Stagecoach Group plc (Stagecoach), a
noncarrier, and a number of its noncarrier intermediate subsidiaries--
Stagecoach Transport Holdings Limited; The Integrated Transport Company
Limited; Stagecoach Aviation Europe Limited; SCOTO Limited; SCUSI
Limited; Coach USA Administration, Inc.; and Coach USA, Inc. (Coach
USA)--along with various carrier and noncarrier subsidiaries of Coach
USA \2\--ASTI, Inc. (ASTI); Blue Bird Coach Lines, Inc. (Blue Bird
Coach); K-T Contract Services, Inc. (K-T); Utica-Rome Bus Company, Inc.
(Utica-Rome Bus); TRT Transportation, Inc. (TRT); Coach USA Tours Las
Vegas, Inc. (Coach USA Tours); Coach USA MBT, LLC (Coach USA MBT); El
Expresso, Inc. (El Expresso); Kerrville Bus Company, Inc. (Kerrville
Bus); Powder River Transportation Services, Inc. (Powder River
Transportation); Valen Transportation, Inc. (Valen); Antelope Valley
Bus, Inc. (Antelope Valley); Coach Leasing, Inc. (Coach Leasing); and
CAM Leasing, LLC (CAM Leasing) \3\--(collectively, Applicants) filed an
application under 49 U.S.C. 14303 to acquire control of the assets of
ten separate interstate motor passenger carrier subsidiaries of
noncarrier Coach America Holdings, Inc. (Coach America)--American Coach
Lines of Atlanta, Inc. (American Coach Lines); CUSA AT, LLC; CUSA AWC,
LLC; CUSA ELKO, LLC; CUSA KBC, LLC; CUSA PCSTC, LLC; CUSA PRTS, LLC;
CUSA RAZ, LLC; Dillon's Bus Service, Inc. (Dillon's); and Lakefront
Lines, Inc. (Lakefront) (collectively, Coach America Subsidiaries).\4\
On June 5, 2012, Michael Yusim, an individual, filed a letter in
opposition to the proposed transaction, asserting that the public
interest would not be served by allowing the transaction to proceed
without certain Department of Labor proceedings first being completed.
A copy of this notice will be served on Mr. Yusim. Persons wishing to
oppose the application must follow the rules set forth at 49 CFR 1182.5
and 1182.8.
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\2\ In addition to the nine carrier applicants, Coach USA
controls 47 other motor passenger carriers that hold interstate
operating authority. A list of these 47 carriers is included as
Exhibit 2 to the Verified Application for Control of Motor Passenger
Carriers and Request for Interim Approval.
\3\ ASTI, Blue Bird Coach, and Utica-Rome Bus are wholly-owned
carrier subsidiaries of Coach USA. Coach USA Tours, TRT, Coach
Leasing, and CAM Leasing are wholly-owned noncarrier subsidiaries of
Coach USA. K-T is a carrier owned 50% by Coach USA and 50% by Coach
USA Tours. Coach USA MBT is a wholly-owned noncarrier subsidiary of
TRT. El Expresso, Kerrville Bus, Powder River Transportation, Valen,
and Antelope Valley are wholly-owned carrier subsidiaries of Coach
USA MBT.
\4\ Specifically, the transaction contemplates that: (1)
Antelope Valley will acquire the assets of Lakefront; (2) ASTI will
acquire the assets of CUSA PCSTC, LLC; (3) Blue Bird Coach will
acquire the assets of Dillon's; (4) El Expresso will acquire the
assets of American Coach Lines; (5) Kerrville Bus will acquire the
assets of CUSA KBC, LLC; (6) K-T will acquire the assets of CUSA
AWC, LLC; (7) Powder River Transportation will acquire the assets of
CUSA ELKO, LLC; (8) Utica-Rome Bus will acquire the assets of CUSA
PRTS, LLC; and (9) Valen will acquire the assets of CUSA RAZ, LLC.
The transaction also contemplates that the names of the acquiring
carriers will be changed to reflect the trade names of the entities
whose assets they will acquire. In addition, CUSA AT, LLC--which
currently has no owned assets--will be acquired by Applicants and
then likely terminated as a limited liability company and its
operating authority surrendered. Further, certain of the motorcoach
assets of the Coach America Subsidiaries will be acquired by Coach
Leasing and CAM Leasing, which will in turn lease the motorcoach
assets to the nine carrier applicants following approval of the
transaction.
DATES: Comments must be filed by August 6, 2012. Applicants may file a
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reply to any comments by August 21, 2012.
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21045 to: Surface Transportation Board, 395 E Street,
SW., Washington, DC 20423-0001. In addition, send one copy of comments
to Applicants' representative: David H. Coburn, Steptoe & Johnson LLP,
1330 Connecticut Avenue, NW., Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT: Jonathon P. Binet, (202) 245-0368.
Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.
SUPPLEMENTARY INFORMATION: The Coach America Subsidiaries are currently
involved in proceedings instituted under Chapter 11 of the Bankruptcy
Code, having filed a voluntary petition for relief with the U.S.
Bankruptcy Court for the District of Delaware on January 3, 2012, and a
motion to sell substantially all of their assets and effectively to
liquidate on January 13, 2012. According to Applicants, the transaction
described above is evidenced by an Asset Purchase Agreement entered by
the parties on May 17, 2012, and was approved by the U.S. Bankruptcy
Court for the District of Delaware at a hearing on May 22, 2012.
On June 5, 2012, Mr. Yusim filed a letter in opposition to the
proposed transaction. Applicants filed a reply to Mr. Yusim's letter on
June 6, 2012, to which Mr. Yusim responded on June 8, 2012. The basis
for Mr. Yusim's opposition relates to two cases pending before the
Secretary of Labor (Secretary)
[[Page 37741]]
in which Mr. Yusim alleges that his employer, an entity called Midnight
Sun Tours, Inc., and his employer's corporate parents (including Coach
America) discriminated against drivers who accurately reported their
hours of service. According to Mr. Yusim, these two cases were
automatically stayed as a result of the bankruptcy proceedings pursuant
to 11 U.S.C. 362. Mr. Yusim requests that the Board disallow the sale
of any subsidiaries of Coach America until the Secretary is allowed to
hear the two cases. Because we have received a timely comment in
opposition to the application, we will not grant tentative authority
under 49 CFR 1182.4(b). See 49 CFR 1182.6(a). Instead, we will
institute a proceeding to address this matter as well as determine the
merits of the application pursuant to 49 U.S.C. 14303. Comments and
responses are to be submitted as ordered below. See 49 CFR 1182.5 &
1182.6.
Board decisions and notices are available on our Web site at
www.stb.dot.gov.
This action will not significantly affect either the quality of the
human environment or the conservation of energy resources.
It is ordered:
1. Comments must be filed by August 6, 2012. Applicants may file a
reply to any comments by August 21, 2012.
2. This notice will be effective on its date of service.
3. A copy of this notice will be served on: (1) The U.S. Department
of Transportation, Federal Motor Carrier Safety Administration, 1200
New Jersey Avenue SE., Washington, DC 20590; (2) the U.S. Department of
Justice, Antitrust Division, 950 Pennsylvania Avenue NW., Washington,
DC 20530; (3) the U.S. Department of Transportation, Office of the
General Counsel, 1200 New Jersey Avenue SE., Washington, DC 20590; (4)
the Federal Trade Commission, Bureau of Competition, Premerger
Notification Office, 600 Pennsylvania Avenue NW., Washington, DC 20580;
and (5) Michael Yusim, 7499 Eagle Point Drive, Delray Beach, FL 33446.
Decided: June 18, 2012.
By the Board, Chairman Elliott, Vice Chairman Mulvey, and
Commissioner Begeman.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2012-15287 Filed 6-21-12; 8:45 am]
BILLING CODE 4915-01-P