Assignment of Proceeding
Loretta M. Lynch is the Assigned Commissioner, and Jeffrey P. O'Donnell is the assigned Administrative Law Judge in this proceeding.
1. By D.97-09-087, Old Teleglobe was granted a CPCN to operate in California as a limited facilities-based and resale provider of interexchange services.
2. On May 15, 2002, Teleglobe Inc., and certain of its affiliates, including Old Teleglobe, applied for an order pursuant to the CCAA commencing a restructuring proceeding, and providing Teleglobe Inc. with protection against creditors while a restructuring plan is being formulated.
3. On May 28, 2002, Old Teleglobe and Teleglobe Inc.'s other U.S. subsidiaries filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code.
4. The U.S. and Canadian proceedings have been consolidated for procedural purposes and are being administered jointly.
5. On October 10, 2002, the Bankruptcy Court entered a sale order authorizing Teleglobe Inc. and its U.S. subsidiaries, including Old Teleglobe, to consummate the proposed transaction subject to receipt of the required regulatory approvals.
6. As a result of the transaction, New Teleglobe will be a wholly-owned subsidiary of TLGB.
7. New Teleglobe, as it will exist after its acquisition by TLGB, will retain much of the management of Old Teleglobe.
8. Customers will continue to receive service under the same rates, terms, and conditions of service after the transaction.
9. New Teleglobe, as it will exist after its acquisition by TLGB, has sufficient financial resources to meet the Commission's requirements to provide facilities-based and resold interexchange services.
10. New Teleglobe, as it will exist after its acquisition by TLGB, possesses the necessary technical expertise required by the Commission.
11. The transaction will provide New Teleglobe with improved access to capital.
12. Notice of this application appeared on the Commission's Daily Calendar on January 13, 2003.
13. There were no protests to this application.
14. No hearings are necessary.
15. Public disclosure of the financial information filed under seal would place New Teleglobe at an unfair business disadvantage.
1. The Commission will apply the same requirements to a request for approval of an agreement to acquire the assets, including the CPCN, of a facilities-based and resale provider of interexchange telecommunications services within California as it does to an applicant for authority to provide such services.
2. New Teleglobe, as it will exist after its acquisition by TLGB, meets the Commission's requirements for the issuance of a CPCN to provide facilities-based and resold interexchange telecommunications services.
3. The transaction provides net benefits to the public and is, therefore, in the public interest.
4. The applicant's request to file financial information under seal should be granted for two years.
5. In order to avoid delaying this transaction, the approval of the application should be made effective immediately.
IT IS ORDERED that:
1. Pursuant to Public Utilities Code Sections 851 and 854, the joint application Teleglobe USA Inc. (Old Teleglobe), Teleglobe USA LLC (New Teleglobe), and TLGB Corporation (TLGB) for approval of the transfer of the assets and certificate of public convenience and necessity of Old Teleglobe to New Teleglobe, and the subsequent transfer of New Teleglobe to TLGB is approved.
2. The applicants' request to have the financial information filed with the application kept under seal is granted for two years from the effective date of this decision. During that period the information shall not be made accessible or disclosed to anyone other than the Commission staff except on the further order or ruling of the Commission, the Assigned Commissioner, the assigned Administrative Law Judge (ALJ), or the ALJ then designated as Law and Motion Judge.
3. If the applicants believe that further protection of the information kept under seal is needed, they may file a motion stating the justification for further withholding of the information from public inspection, or for such other relief as the Commission rules may then provide. This motion shall be filed no later than one month before the expiration date.
4. This application is closed.
This order is effective today.
Dated May 8, 2003, at San Francisco, California.
MICHAEL R. PEEVEY
President
CARL W. WOOD
LORETTA M. LYNCH
GEOFFREY F. BROWN
SUSAN P. KENNEDY
Commissioners
