2. Background

Applicant is a Nevada Corporation authorized to do business in California. Applicant holds a certificate of public convenience and necessity (CPCN), issued by the Commission, to provide interexchange telecommunications services in California.² Applicant is a wholly owned subsidiary of 360networks holdings (USA) inc. (US Holdings). US Holdings is a subsidiary of 360networks Corporation (360 Corp.), and 360 Corp. is a wholly owned subsidiary of 360networks, a Canadian Corporation.

In June 2001, 360networks and certain of its subsidiaries commenced bankruptcy proceedings in The Supreme Court of British Columbia, Canada and in the Unites States Bankruptcy Court, Southern District of New York. On October 1, 2002, the U.S. Bankruptcy Court approved the First Amended Joint Plan of Reorganization and Consolidated Plan of Compromise or Arrangement (collectively referred to as the "Plans") filed by Applicant and 360 Corp.³

On October 18, 2002, Applicant filed A.02-10-022 for authority under §854 for indirect transfer of its public utility business according to the Plans approved by the U.S. Bankruptcy Court. The application states that Plans will be effectuated by October 31, 2002 and requests Commission approval of the transfer by October 24, 2002, or six days after the application was filed. The application further requests retroactive, or "nunc pro tunc"⁴ approval of the application should the Commission not act before the Plans are effectuated.

On February 20, 2003, Applicant explained in a letter to the Administrative Law Judge that the Plans were implemented on November 12, 2002. On September 5, 2003, Applicant filed a motion to supplement the record to provide a copy of its financial statements and a copy of the Plans, as required by Rule 36 of the Commission's Rules of Practice and Procedure.