[Federal Register Volume 68, Number 141 (Wednesday, July 23, 2003)]
[Notices]
[Pages 43569-43570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18745]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC-F-21000]


KBUS Holdings, LLC--Acquisition of Assets and Business 
Operations--All West Coachlines, Inc., et al.

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice tentatively approving finance transaction.

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SUMMARY: KBUS Holdings, LLC (KBUS or Applicant), a noncarrier, has 
filed an application under 49 U.S.C. 14303 to purchase and merge the 
assets and business operations of: All West Coachlines, Inc. (MC-
212056); American Charters & Tours, Inc. (MC-153814); Americoach Tours, 
Ltd. (MC-212649); Antelope Valley Bus, Inc. (Antelope) (MC-125057); 
Airport Bus of Bakersfield, Inc., a subsidiary of Antelope (MC-163191); 
Arrow Stage Lines, Inc. (MC-029592); Bayou City Coaches, Inc. (MC-
245246); Blackhawk, Central City Ace Express, Inc. (MC-273611); Browder 
Tours, Inc. (MC-236290); California Charters, Inc. (MC-241211); Desert 
Stage Lines, owned by Antelope (MC-140919); El Expreso, Inc. (MC-
244195); Express Shuttle, Inc. (MC-254884); Franciscan Lines, Inc. (MC-
425205); Fun Time Tours, Inc. (MC-176329); Goodall's Charter Bus 
Service, Inc. (MC-148870); Grosvenor Bus Lines, Inc. (MC-157317); Gulf 
Coast Transportation Company (MC-201397); Kerrville Bus Company, Inc. 
(MC-27530), and 3 subsidiaries, Community Rentals Company (MC-257338), 
Sunset Tours & Travel, Inc. (MC-241422), and William Timothy Vaught d/
b/a Vaught Bus Leasing Company (MC-209574); K-T Contract Services, Inc. 
(MC-218583); PCSTC, Inc. (MC-184852); Powder River Transportation 
Services, Inc. (MC-161531); Royal West Tours & Cruises, Inc. (MC-
239135); Stardust Tours-Memphis, Inc. (MC-318341); Texas Bus Lines, 
Inc. (MC-037640); Travel Impressions, LLC (MC-340826); Valen 
Transportation, Inc. (MC-212398); and Worthen Van Service, Inc. (MC-
142573) (collectively, Sellers). Persons wishing to oppose this 
application must follow the rules at 49 CFR 1182.5 and 1182.8. The 
Board has tentatively approved the transaction, and, if no opposing 
comments are timely filed, this notice will be the final Board action.

DATES: Comments must be filed by September 8, 2003. Applicant may file 
a reply by September 22, 2003. If no comments are filed by September 8, 
2003, this notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-21000 to: Surface Transportation Board, 1925 K 
Street, NW., Washington, DC 20423-0001. In addition, send one copy of 
any comments to applicant's representative: Stephen Flott, Flott & Co. 
PC, P.O. Box 17655, Arlington, VA 22216-7655.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600. [Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.]

SUPPLEMENTARY INFORMATION: KBUS is a private limited liability company 
organized under the laws of the state of Delaware by Kohlberg & 
Company, LLC (Kohlberg), a noncarrier. Kohlberg is a private equity 
firm specializing in middle market investments. KBUS,

[[Page 43570]]

which was specifically created to undertake this transaction, entered 
into an agreement with the Sellers to buy the assets, including 
vehicles, and business operations of the Sellers and to take over 
vehicle leases. KBUS is undertaking this transaction under Kohlberg 
Fund IV, which closed in 2001 with a total capital of $576 million.
    KBUS is a noncarrier and will remain a noncarrier after this 
transaction. Applicant plans to consolidate the assets and business 
operations of the Sellers into two entities: A leasing company and 
CUSA, LLC (CUSA). The leasing company will acquire the vehicles and 
CUSA will conduct carrier operations. CUSA has applied for twelve 
operating authorities from the Federal Motor Carrier Safety 
Administration to operate as a motor contract and common carrier of 
passengers in interstate commerce, in order to accommodate the twenty-
four operating names under which CUSA intends to carry on business. The 
Federal operating authorities currently held by each of the Sellers 
will, upon consummation, be surrendered.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction found to be consistent with the public interest, taking 
into consideration at least: (1) The effect of the transaction on the 
adequacy of transportation to the public; (2) the total fixed charges 
that result; and (3) the interest of affected carrier employees.
    Applicant has submitted information, as required by 49 CFR 1182.2, 
including information to demonstrate that the proposed transaction is 
consistent with the public interest under 49 U.S.C. 14303(b). Applicant 
states that the proposed transaction will not reduce competitive 
options, adversely impact fixed charges, or adversely impact the 
interests of employees of companies whose assets and businesses are 
being acquired. It asserts that granting the application will allow 
CUSA to take advantage of economies of scale and substantial benefits 
offered by Applicant, including interest cost savings and reduced 
operating costs. Additional information, including a copy of the 
application, may be obtained from Applicant's representative.
    On the basis of the application, the Board finds that the proposed 
transaction is consistent with the public interest and should be 
authorized. If any opposing comments are timely filed, this finding 
will be deemed vacated and, unless a final decision can be made on the 
record as developed, a procedural schedule will be adopted to 
reconsider the application. See 49 CFR 1182.6(c). If no opposing 
comments are filed by the expiration of the comment period, this 
decision will take effect automatically and will be the final Board 
action.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.
    This decision will not significantly affect either the quality of 
the human environment or the conservation of energy resources.
    It is ordered:
    1. The proposed finance transaction is approved and authorized, 
subject to the filing of opposing comments.
    2. If timely opposing comments are filed, the findings made in this 
decision will be deemed vacated.
    3. This decision will be effective on September 8, 2003, unless 
timely opposing comments are filed.
    4. A copy of this notice will be served on: (1) The U.S. Department 
of Transportation, Federal Motor Carrier Safety Administration, 400 7th 
Street, SW., Room 8214, Washington, DC 20590; (2) the U.S. Department 
of Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, NW., 
Washington, DC 20530; and (3) the U.S. Department of Transportation, 
Office of the General Counsel, 400 7th Street, SW., Washington, DC 
20590.

    Decided: July 17, 2003.

    By the Board, Chairman Nober.
Vernon A. Williams,
Secretary.
[FR Doc. 03-18745 Filed 7-22-03; 8:45 am]
BILLING CODE 4915-00-P