[Federal Register Volume 64, Number 202 (Wednesday, October 20, 1999)]
[Notices]
[Pages 56571-56572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27412]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20956] 1
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\1\ This proceeding embraces STB Docket No. MC-F-20956 TA.
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Northwest Motor Coach L.L.C.--Control--Evergreen Stage Line, Inc.
and Evergreen Bus Company, Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving finance application and granting
interim approval.2
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\2\ Interim approval will be effective on October 18, 1999.
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SUMMARY: Northwest Motor Coach L.L.C. (Northwest) and L & K Acquisition
Corp. (L & K), two noncarrier holding companies, and Evergreen Stage
Line, Inc. (ESL) and Evergreen Bus Company, Inc. (EBC), two regulated
motor passenger carriers, all of Portland, OR (collectively,
applicants), have filed: (1) An application under 49 U.S.C. 14303(a)
for Northwest to acquire control of ESL and EBC; and (2) a request for
interim approval of the transaction under 49 U.S.C. 14303(i) pending
determination of the application. Persons wishing to oppose the
application must follow the rules at 49 CFR part 1182, subpart B. The
Board has tentatively approved the application. If no opposing comments
are timely filed, this notice will be the final Board action.
DATES: Comments are due by December 6, 1999. Applicants may reply by
December 21, 1999. If no comments are received by December 6, 1999,
this approval is effective on that date.
ADDRESSES: Send an original and 10 copies of any comments referring to
STB Docket No. MC-F-20956 to: Surface Transportation Board, Office of
the Secretary, Case Control Unit, 1925 K Street, NW, Washington, DC
20423-0001. In addition, send one copy of any comments to applicants'
representative: Jeremy Kahn, Kahn & Kahn, 1730 Rhode Island Ave., NW,
Suite 810, Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600.
(TDD for the hearing impaired: (202) 565-1695.)
SUPPLEMENTARY INFORMATION: Applicants state that ESL 3 and
EBC 4 are currently controlled by L & K; Northwest is
controlled by Larry S. Black and Jerry L. Kilb. L & K owns all of the
stock of ESL, and ESL, in turn, owns all of the stock of EBC.
Applicants state that none of the entities involved in this proceeding
is affiliated with any other motor carrier, except that Jerry L. Kilb,
a principal in L & K and president of ESL and EBC, is a principal of
Northwest and will remain president of ESL and EBC following the
proposed transaction.
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\3\ ESL holds federally-issued operating authority in Docket No.
MC-29839, authorizing the transportation of passengers in charter
and special operations, between points in the United States. It also
holds Motor Carrier Permit No. 118436 issued by the Oregon Public
Utility Commission authorizing certain intrastate operations. ESL
had gross operating revenues of $1,860,000 for the 12-month period
ending June 30, 1999.
\4\ EBC holds federally-issued operating authority in Docket No.
MC-39416, authorizing the transportation of passengers, in charter
and special operations, between points in the United States. It also
holds a Motor Carrier Certificate in File No. 237, Class 1P, MEP
960003 issued by the Oregon Department of Transportation,
authorizing certain intrastate operations. EBC had gross operating
revenues of $4,450,000 for the 12-month period ending June 30, 1999.
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Applicants state that: (1) L & K has agreed to sell Northwest all
of its assets (including its stock in ESL) and all of its liabilities;
(2) upon consummation of the transaction, Northwest will control two
regulated passenger carriers and the previous shareholders of L & K
will own approximately 7.5% of the shares of Northwest; and (3) L & K
will no longer have any control of any regulated passenger carriers.
Applicants state that the proposed transaction will have no impact
on the adequacy of transportation services available to the public. The
proposal involves only a sale of the two carriers from one holding
company to a second, and there will be no change in carrier operations.
Applicants assert that Northwest's acquisition of control, with a new
infusion of funds, will assure the continued viability of ESL and EBC
and result in the continued availability of adequate service to the
public.
According to applicants, the transaction includes a fixed payment
to L & K shareholders which can readily be paid from Northwest's equity
investment and third party financing without affecting carrier
operations. Applicants add that no carrier employees will be adversely
affected by the transaction, as the carriers will continue to perform
the same operations with the same employees.
Applicants certify that: (1) ESL and EBC hold a satisfactory safety
rating
[[Page 56572]]
from the U.S. Department of Transportation; (2) ESL and EBC maintain
sufficient liability insurance; (3) none of the involved carriers is
domiciled in Mexico nor owned or controlled by persons of that country;
and (4) approval of the transaction will not significantly affect
either the quality of the human environment or the conservation of
energy resources.
Under 49 U.S.C. 14303(b), the Board must approve and authorize
transactions it finds consistent with the public interest, taking into
account at least: (1) The effect of the transactions on the adequacy of
transportation to the public; (2) the total fixed charges that result;
and (3) the interest of affected carrier employees.
On the basis of the application, we find that the proposed
acquisition of control 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.5 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.
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\5\ Under 49 CFR 1182.6(c), a procedural schedule will not be
issued if we are able to dispose of opposition to the application on
the basis of comments and the reply.
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In their interim approval request, applicants state that, because
the current owners of ESL and EBC are not prepared to make necessary
long term investments in them, it is necessary that Northwest be
allowed to assume their temporary control on or immediately after
October 18, 1999, or the carriers could lose their market position to
competitors, thereby causing severe injury to the ESL and EBC
properties. Applicants have explained that the failure to grant such
interim approval may result in injury to the motor carrier properties
or substantially interfere with their future usefulness in providing
adequate and continuous service to the public. Accordingly, the interim
approval will be granted.6
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\6\ The Board will entertain petitions to reconsider a grant of
interim approval. Such petitions may be filed only by a person who
has filed a comment in opposition to the application. See 49 U.S.C.
1182.7(e) for further details.
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Board decisions and notices are available on our website at
``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. Northwest's control of ESL and EBC is approved and authorized,
subject to the filing of opposing comments.
2. Northwest is granted interim approval to operate the properties
of ESL and EBC for a period of not more than 180 days pending
determination of the application.
3. If timely opposing comments are filed, the findings made in this
decision will be deemed vacated.
4. This decision will be effective on December 6, 1999, unless
timely opposing comments are filed.
5. A copy of this notice will be served on: (1) The U.S. Department
of Transportation, Office of Motor Carriers-HIA 30, 400 Virginia
Avenue, SW, Suite 600, Washington, DC 20024; (2) the U.S. Department of
Transportation, Office of the General Counsel, 400 7th Street, SW,
Washington, DC 20590; and (3) the U.S. Department of Justice, Antitrust
Division, 10th Street and Pennsylvania Avenue, NW, Washington, DC
20530.
By the Board, Chairman Morgan, Vice Chairman Clyburn, and
Commissioner Burkes.
Decided: October 14, 1999.
Vernon A. Williams,
Secretary.
[FR Doc. 99-27412 Filed 10-19-99; 8:45 am]
BILLING CODE 4915-00-P
