[Federal Register Volume 62, Number 57 (Tuesday, March 25, 1997)]
[Notices]
[Page 14183]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7658]
[[Page 14183]]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket S-943 Sub. 1]
Lykes Bros. Steamship Co., Inc.; Notice of Additional Application
for Written Permission Pursuant to Section 805(a) of the Merchant
Marine Act, 1936, as Amended
Lykes Bros. Steamship Co., Inc. (Lykes), by letter of March 20,
1997, requests additional written permission to its March 14, 1997,
request published on March 19, 1997 (62 F.R. 13209-11), pursuant to
section 805(a) of the Merchant Marine Act, 1936, as amended (Act), and
Lykes' Operating-Differential Subsidy Agreement (ODSA), Contract MA/
MSB-451 to become affiliated after the confirmation of its Chapter 11
plan of reorganization (Reorganization Plan), when it will emerge from
Chapter 11 as a reorganized entity (Reorganized Lykes), with GATX Third
Aircraft. Lykes' operating-differential subsidy (ODS) is effective
through December 31, 1997, for seven vessels. The additional
information involves GATX Third Aircraft which is owned by GATX
Capital, which is owned by GATX Financial Services, which in turn is
owned by GATX Corporation, which owns but leases out and does not
operate the following vessels in the domestic trade:
DAVID NORTON
G. STINSON
WOLVERINE
ITBU PRESQUE ISLE
The above four vessels are self-unloading bulk vessels engaged in
trade on the Great Lakes.
TANK BARGE TEXAS
TANK BARGE PENNSYLVANIA
These barges are operated in the coastwise trade and carry
petroleum products.
68 Double Skin Tank Barges
These barges carry petroleum products and chemicals on U.S. rivers
and inland waterways and occasionally operate in the U.S. coastwise
trades.
The ``affiliation'' giving rise to this request for permission will
be created as part of a restructuring under the supervision of the
United States Bankruptcy Court. Lykes believes that the operational
facts of this situation should be distinguished from the more common
section 805(a) situation in which an ODS contractor wishes to directly
or indirectly establish a domestic service. While GATX Third Aircraft
owns the vessels involved, they are all leased and operated by others.
Lykes states that neither GATX Third Aircraft nor any of its parent
companies have any affiliation whatever with the ODS contractor, and
the circumstances giving rise to the need for section 805(a) permission
will have absolutely no impact on the way in which that domestic
service is provided.
Lykes indicates that Lykes and GATX Third Aircraft and the latter's
parent companies currently have no operational relationship whatsoever.
According to Lykes, that situation will continue after approval of the
Reorganization Plan and acquisition of ownership of Lykes. Reorganized
Lykes will continue as the ODS contractor, and GATX Third Aircraft will
not be involved in any way in Reorganized Lykes' operations.
Reorganized Lykes and GATX Third Aircraft will have separate
management, separate books, and separate operational staff, and will
provide geographically separate services. The only relationship between
the companies will be that they will have a common ultimate parent. In
the case of Reorganized Lykes, that ultimate parent (GATX Corporation)
is three companies ``up stream'' in the corporate ownership hierarchy.
According to Lykes, no subsidy paid to Reorganized Lykes will be
diverted directly or indirectly to GATX Third Aircraft, nothing in GATX
Third Aircraft's finances or operations will change as a result of the
reorganization, and there will be no impact on any competitor.
For the foregoing reasons, and in light of the degree of separation
between Reorganized Lykes and GATX Third Aircraft and the short
remaining term of Lykes' ODS contract, Lykes requests that the
Secretary issue written permission pursuant to section 805(a) for
Reorganized Lykes to become affiliated with GATX Third Aircraft.
Because this permission is an integral part of the Reorganization Plan
under consideration by the Bankruptcy Court, Lykes respectfully
requests that its application be given the most expeditious possible
consideration and that written permission be granted as soon as
possible.
The application may be inspected in the Office of the Secretary,
Maritime Administration. Any person, firm or corporation having any
interest (within the meaning of section 805(a)) in Lykes' request and
desiring to submit comments concerning the request must by 5:00 PM on
March 28, 1997, file written comments in triplicate with the Secretary,
Maritime Administration, together with petition for leave to intervene.
The petition shall state clearly and concisely the grounds of interest,
and the alleged facts relied on for relief.
If no petition for leave to intervene is received within the
specified time or if it is determined that petitions filed do not
demonstrate sufficient interest to warrant a hearing, the Maritime
Administration will take such actions as may be deemed appropriate.
In the event petitions regarding the relevant section 805(a) issues
are received from parties with standing to be heard, a hearing will be
held, the purpose of which will be to receive evidence under section
805(a) relative to whether the proposed operations (a) could result in
unfair competition to any person, firm, or corporation operating
exclusively in the coastwise or intercoastal service, or (b) would be
prejudicial to the objects and policy of the Act relative to domestic
trade operations.
(Catalog of Federal Domestic Assistance Program No. 20.805
(Operating-Differential Subsidy))
By Order of the Maritime Administrator.
Dated: March 21, 1997.
Joel C. Richard,
Secretary.
[FR Doc. 97-7658 Filed 3-24-97; 8:45 am]
BILLING CODE 9410-81-P
