This is the determination of
the Railroad Retirement Board concerning the continuing status of the
Minnesota Central Railroad Co. (MCRC) as an employer under the Railroad
Retirement Act (45 U.S.C. § 231, et seq.) (RRA) and the Railroad
Unemployment Insurance Act (45 U.S.C. § 351, et seq.) (RUIA). MCRC (B.A.
No. 2641) was determined to be an employer under the RRA and RUIA
effective December 16, 1994.
According to Mr. Timothy S. Tennant, President and CEO of Cascade
Railcorp, Inc., a noncarrier holding company which controls MCRC (See
Surface Transportation Board Finance Docket No. 33804, decided October 8,
1999), MCRC ceased operations on August 3, 2000. Mr. Tennant also stated
that MCRC employees were last compensated on July 15, 2000 and that MCRC
employees are still owed compensation for the period July 16, 2000 through
August 3, 2000. MCRC filed bankruptcy on August 22, 2000. Mr. John Robert
Byrnes, Assistant United States Trustee, was in charge of appointing a
trustee to administer the assets of the debtor, MCRC. Mr. Byrnes stated on
August 25, 2000 that MCRC has no current operations; that MCRC does not
intend to resume operations; and that, in view of these circumstances, the
trustee's activities will be limited to the liquidation of MCRC's assets.
Mr. Larry Liebzeit, Esquire, was appointed trustee for the MCRC
bankruptcy. On April 12, 2001, based on Mr. Liebzeit's motion, the
bankruptcy court issued an order authorizing the cessation of the debtor's
operations by liquidation of MCRC's assets by the trustee. An abandonment
order from the Surface Transportation Board will be sought by the
McFarland Law Firm in Chicago, Illinois, once all of the assets of MCRC
are liquidated. The bankruptcy court also ordered the trustee to enter
into a compromise with respect to foreclosure on a portion of the railroad
tracks owned by MCRC. In view of the foregoing, it is clear that MCRC is
no longer capable of operating as a railroad employer.
Based on the above information, it is the determination of the Railroad
Retirement Board that the Minnesota Central Railroad Company ceased to be
an employer under the RRA and RUIA on August 3, 2000, the date on which it
ceased operations. |
