Pg 1 of 7 One Bryant Park New York, New York 10036 Tel: (212) 872-1000 Fax: (212) 872-1002 Lisa G. Beckerman Rachel Ehrlich Albanese Michael P. Cooley 1333 New Hampshire Avenue, N.W. Washington, DC 20036 Tel: (202) 887-4000 Fax: (202) 887-4288 Scott L. Alberino (Admitted Pro Hac Vice) Counsel to the Debtors and Debtors in Possession UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: METRO AFFILIATES, INC., et al., 1 Debtors. Chapter 11 Case No. 13-13591 (SHL) Jointly Administered NOTICE OF MISCELLANEOUS ASSET SALE (ACTION BUS SALES, INC.) 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor s federal taxpayer identification number, are: 180 Jamaica Corp. (7630); Amboy Bus Co., Inc. (2363); Atlantic Escorts, Inc. (8870); Atlantic Express Coachways, Inc. (2867); Atlantic Express New England, Inc. (4060); Atlantic Express of California, Inc. (5595); Atlantic Ex`press of Illinois, Inc. (5759); Atlantic Express of LA, Inc. (1639); Atlantic Express of Missouri, Inc. (3116); Atlantic Express of New Jersey, Inc. (8504); Atlantic Express of Pennsylvania, Inc. (0330); Atlantic Express Transportation Corp. (4567); Atlantic Queens Bus Corp. (0276); Atlantic Paratrans of NYC, Inc. (1114); Atlantic Paratrans, Inc. (3789); Atlantic Transit, Corp. (5121); Atlantic-Hudson, Inc. (3439); Block 7932, Inc. (3439); Brookfield Transit, Inc. (8247); Courtesy Bus Co., Inc. (5239); Fiore Bus Service, Inc. (1233); Groom Transportation, Inc. (7208); G.V.D. Leasing, Inc. (0595); James McCarty Limo Services, Inc. (8592); Jersey Business Land Co. Inc. (3850); K. Corr, Inc. (4233); Merit Transportation Corp. (8248); Metro Affiliates, Inc. (0142); Metropolitan Escort Service, Inc. (9197); Midway Leasing, Inc. (7793); R. Fiore Bus Service, Inc. (3609); Raybern Bus Service, Inc. (9412); Raybern Capital Corp. (6990); Raybern Equity Corp. (3830); Robert L. McCarthy & Son, Inc. (4617); Staten Island Bus, Inc. (6818); Temporary Transit Service, Inc. (0973); Atlantic Express of Upstate New York Inc. (1570); Transcomm, Inc. (4493); and Winsale, Inc. (2710). The Debtors service address at Metro Affiliates, Inc. s corporate headquarters is 7 North Street, Staten Island, NY 10302.
Pg 2 of 7 PLEASE TAKE NOTICE that, on November 4, 2013, the above-captioned debtors and debtors in possession (collectively, the Debtors ) filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code, 11 U.S.C. 101-1532. PLEASE TAKE FURTHER NOTICE that, on January 13, 2014, the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court ) entered an order approving the Debtors Motion (the Motion ) for an Order Approving Expedited Procedures for the Sale or Transfer of Miscellaneous Assets [ECF No. 609] (the Procedures Order ), whereby the Bankruptcy Court approved certain procedures permitting the Debtors to sell or transfer certain assets (the Miscellaneous Assets ) in an efficient and cost-effective manner. PLEASE TAKE FURTHER NOTICE that, pursuant to the Procedures Order, the Debtors propose to sell or transfer or, in the case of any executory contracts or unexpired leases, assume and assign to the purchaser (the Proposed Sale ) the Miscellaneous Assets described on Exhibit A hereto (the Sale Assets ). Exhibit A identifies (i) the Sale Assets to be sold or transferred; (ii) the identity of the Proposed Purchaser 2 and any relationship the Proposed Purchaser has to the Debtors; (iii) the proposed cash consideration and other consideration to be paid by the Proposed Purchaser; (iv) the material economic terms and conditions of the Proposed Sale; (v) the identities of any known parties holding or asserting liens or other interests or potential interests in the relevant Miscellaneous Assets; and (vi) the executory contracts and unexpired leases, if any, that the Debtors propose to be assumed and assigned or rejected as part of the Proposed Sale, the amounts required to cure any defaults pursuant to section 365(b) of the 2 Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Motion. 2
Pg 3 of 7 Bankruptcy Code, and a statement regarding the adequate assurance of future performance by the Proposed Purchaser, consistent with section 365 of the Bankruptcy Code. PLEASE TAKE FURTHER NOTICE that, pursuant to the Procedures Order, any objection to the Proposed Sale must be (i) made in writing, stating the grounds for the objection with specificity; and (ii) filed with the Bankruptcy Court and served so as to be received on or before May 8, 2014 at 5:00 p.m. (prevailing Eastern Time) on (a) Akin Gump Strauss Hauer & Feld LLP, One Bryant Park, New York, NY 10036 (Attn: Lisa G. Beckerman, lbeckerman@akingump.com; and Rachel Ehrlich Albanese, ralbanese@akingump.com), and Akin Gump Strauss Hauer & Feld LLP, 1333 New Hampshire Avenue, N.W., Washington, DC 20036 (Attn: Scott L. Alberino, salberino@akingump.com), counsel to the Debtors; (b) the Office of the United States Trustee for Region 2, U.S. Federal Office Building, 201 Varick Street, Suite 1006, New York, NY 10014 (Attn: Michael Driscoll, michael.driscoll@usdoj.gov; and William E. Curtin, william.e.curtin@usdoj.gov); (c) Farrell Fritz, P.C., 1320 RXR Plaza, Uniondale, NY 11556-1320 (Attn: Ted A. Berkowitz, tberkowitz@farrellfritz.com; and Louis Scarcella, lscarcella@farrellfritz.com), counsel to the Committee; (d) Carter Ledyard & Milburn LLP, 2 Wall Street, New York, NY 10005, (Attn: James Gadsden, bankruptcy@clm.com), counsel to The Bank of New York Mellon, as indenture trustee for the Debtors 10.5% Senior Secured Notes due 2017 BNYM ); (e) Otterbourg, Steindler, Houston & Rosen, P.C., 230 Park Avenue, New York, NY 10169 (Attn: Jonathan Helfat, jhelfat@otterbourg.com; and Dan Fiorillo, dfiorillo@otterbourg.com), counsel to Wells Fargo Bank, N.A. (the DIP Lender ), (f) any known holder of liens (other than those of the DIP Lender and BNYM) asserted against the Sale Assets or any other known interested party in Sale Assets identified on Exhibit A hereto; (g) the Proposed Purchaser identified on Exhibit A; (h) Stroock & Stroock & Lavan, 180 Maiden 3
Pg 4 of 7 Lane, New York, NY 10038-4982 (Attn: Kris Hansen, khansen@stroock.com), counsel to certain holders of the Debtors 10.5% Senior Secured Notes due 2017; and (i) if applicable, the non-debtor counterparties to any executory contracts or unexpired leases identified on Exhibit A that the Debtors propose to assume and assign or reject in connection with the Proposed Sale. PLEASE TAKE FURTHER NOTICE that the consent of the DIP Lender is required prior to the consummation of the Proposed Sale. If no written objections are timely filed with the Bankruptcy Court and served in accordance with the preceding paragraph, the Debtors are authorized, without further notice or Bankruptcy Court approval, to immediately consummate the Proposed Sale. New York, NY Dated: May 1, 2014 /s/ Lisa G. Beckerman One Bryant Park New York, New York 10036 Tel: (212) 872-1000 Fax: (212) 872-1002 Lisa G. Beckerman Rachel Ehrlich Albanese Michael P. Cooley 1333 New Hampshire Avenue, N.W. Washington, DC 20036 Tel: (202) 887-4000 Fax: (202) 887-4288 Scott L. Alberino Counsel to the Debtors and Debtors in Possession 4
Pg 5 of 7 EXHIBIT A TERMS OF PROPOSED SALE Purchaser Action Bus Sales, Inc. The purchaser is not an insider or affiliate of the Debtors, and constitutes a true third party purchaser. Consideration Cash payment of $46,000.00 Sale Assets Known Lien Holders Other Material Terms Contracts/Leases Cure Amounts Statement of Future Performance Identified on Schedule 1 hereto. Identified on Schedule 1 hereto. The sale is on an as-is, where-is basis, with no representations or warranties. None. Not applicable. Not applicable.
Pg 6 of 7 Additional Sale Notice Parties Purchaser Lienholders Action Bus Sales, Inc. 4642 West Market Street, Unit 198 Greensboro, NC 29407 Bank of New York Mellon c/o Carter Ledyard & Milburn LLP 2 Wall Street New York, NY 10005 Attn: James Gadsden Email: gadsden@clm.com Merchants Automotive Group, Inc. 1278 Hooksett Road Hooksett, NH 03106 Wells Fargo Bank, N.A. Otterbourg, Steindler, Houston & Rosen, P.C. 230 Park Avenue New York, NY 10169 Attn: Jonathan Helfat Email: jhelfat@otterbourg.com 2
Pg 7 of 7 SCHEDULE 1 VEHICLES YEAR VEH# VIN PLATE # CLASSIFICATION LIENHOLDER OLV Price 2006 016105 1BAKFCKA96F235771 46272BA TYPE C SCH BUS BNY Mellon $20,300 2000 010299 1HVBBAANXYH289933 46198BA TYPE C SCH BUS BNY Mellon $7,000 1997 017050 1GDM7T1J0TJ513863 26270BA TYPE C SCHL BUS BNY Mellon $3,500 1999 019158 1GDM7T1C5WJ520054 25710BA TYPE C SCH BUS BNY Mellon $5,600 2000 010149 1FDXE45F4YHA73871 20530SL TYPE A HDCP SCH BUS BNY Mellon $3,500 2009 019288 4DRBUAAN29A116798 59916BA TYPE C SCH BUS BNY Mellon $28,000 2008 018241 1GBJG316281185652 36261SL TYPE A SCH BUS Wells Fargo (DIP) $14,700 1997 507108 1GDM7T1J7TJ516615 40235BA TYPE C SCHL BUS BNY Mellon $3,500 2008 018212 4DRBUAAN98B657016 54122BA TYPE C SCH BUS Wells Fargo (DIP) $25,900 2002 012239 1GBHG31F821206686 27507SL TYPE A SCH BUS Merchants $4,900 2000 010193 1FDXE45F7YHB63452 20784SL TYPE A HDCP SCH BUS BNY Mellon $3,500 TOTAL: $120,400 $46,000