[Federal Register Volume 72, Number 134 (Friday, July 13, 2007)]
[Notices]
[Pages 38653-38654]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-13533]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC-F-21022] \1\


Callen Hotard--Acquisition--Hotard Coaches, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice Tentatively Approving Finance Transaction.

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SUMMARY: Callen Hotard (Applicant), a noncarrier individual, who is 
owner and president of Calco Travel, Inc. (Calco) (MC-161117), a motor 
passenger carrier, has filed an application under 49 U.S.C. 14303 to 
acquire control of Hotard Coaches, Inc. (Coaches) (MC-143881), a motor 
passenger carrier, from Greyhound Lines, Inc. (Greyhound) (a regulated 
passenger carrier). Greyhound is a subsidiary of Laidlaw Transportation 
Holdings, Inc. (LTHI) (a noncarrier). Applicant proposes to acquire 
control via a stock purchase by Hotard Travel, Inc. (Hotard Travel) (a 
noncarrier), a corporation formed by Applicant and Szeszycki 
Hospitality, L.L.C. (Szeszycki) (a noncarrier).\2\ Coaches would 
continue to hold its Federal Motor Carrier Safety Administration motor 
passenger carrier operating license. 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.
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    \1\ A request for interim approval under 49 U.S.C. 14303(i) was 
included in this filing (STB Docket No. MC-F-21022 TA). In a 
decision served on June 25, 2007, temporary approval was granted, 
effective on the service date of the decision.
    \2\ The verified application and request for interim approval 
was originally filed by Applicant. However, on June 26, 2007, 
Applicant filed a petition requesting that Hotard Travel, a 
Louisiana corporation formed by Applicant and Szeszycki (which does 
not require Board approval for this transaction because it will have 
minority control of Coaches), be permitted to substitute for 
Applicant as the purchasing party in this proceeding. Hotard Travel, 
as a noncarrier that does not control another carrier, does not 
require Board authority for this transaction. However, Applicant, 
who also controls Calco, requires Board approval to control Coaches 
(indirectly) through his control of Hotard Travel (by virtue of his 
majority interest in Hotard Travel). Accordingly, there is no need 
to substitute parties in this transaction. However, the notice 
reflects that the sale of Coaches' stock will be made to Hotard 
Travel, and not directly to Applicant.

DATES: Comments must be filed by August 27, 2007. Applicant may file a 
reply by September 11, 2007. If no comments are filed by August 27, 
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2007, this notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-21022 to: Surface Transportation Board, 395 E 
Street, SW., Washington, DC 20423-0001. In addition, send one copy of 
comments to Applicant's representative: Kenneth Siegel, Strasburger & 
Price, LLP, 1800 K Street, NW., Suite 301, Washington, DC 20006-2225.

FOR FURTHER INFORMATION CONTACT: Julia M. Farr, (202) 245-0359. 
[Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.]

SUPPLEMENTARY INFORMATION: Applicant is owner and president of Calco, a 
subchapter S corporation incorporated under the laws of the State of 
Louisiana. Calco operates as a charter bus company providing both local 
and nationwide charter bus service. Hotard Travel is a Louisiana 
corporation formed by Applicant and Szeszycki for the purposes of 
completing this stock purchase transaction. Coaches is a Mississippi 
corporation that provides charter service in Mississippi and Louisiana. 
LTHI owns ten federally registered motor passenger carrier 
subsidiaries, including Greyhound and Coaches.\3\ Applicant states that 
Greyhound and its affiliates had gross revenues exceeding $2 million in 
during the 12-month period preceding the date of this application.
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    \3\ See Laidlaw Inc.-Intra-Corporate Family Transaction 
Exemption, STB Docket No. MC-F-20998 (STB served Feb. 21, 2003).
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    The parties finalized a stock purchase agreement on June 7, 2007. 
The shares of Coaches will be transferred to an independent voting 
trust pending final Board approval to avoid unauthorized control. The 
Board's Secretary provided the parties an informal, non-binding, 
opinion on the voting trust agreement in letters dated June 25, 2007, 
and July 6, 2007.
    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 the 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 improve the 
adequacy of transportation services available to the public, that the 
proposed transaction will not have an adverse effect on total fixed 
charges, and that the interests of employees of Coaches will not be 
adversely impacted. Additional information, including a copy of the 
application, may be obtained from Applicant's representative.
    On the basis of the application, we find that the proposed 
acquisition 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 notice 
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 motion to substitute Hotard Travel, Inc., in place of Callen 
Hotard as the named applicant in this proceeding is denied.
    2. The proposed finance transaction is approved and authorized, 
subject to the filing of opposing comments.
    3. If timely opposing comments are filed, the findings made in this 
notice will be deemed as having been vacated.
    4. This notice will be effective on August 27, 2007, unless timely 
opposing comments are filed.
    5. 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, 10th Street & Pennsylvania Avenue, NW., 
Washington, DC 20530; and (3) the U.S. Department of Transportation, 
Office of the General Counsel, 1200 New Jersey Avenue, SE., Washington, 
DC 20590.

    Dated: July 6, 2007.


[[Page 38654]]


    By the Board, Chairman Nottingham, Vice Chairman Buttrey, and 
Commissioner Mulvey.
Vernon A. Williams,
Secretary.
[FR Doc. E7-13533 Filed 7-12-07; 8:45 am]
BILLING CODE 4915-01-P