[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