Academy/Pace operations.....

[twyztdmynd]

Buses for auction...

http://www.amer-auction.com/BUSES%20&%20COACHES.htm

[Busjack]

Buses for auction...

http://www.amer-auction.com/BUSES%20&%20COACHES.htm

At least the headline confirms that Colonial/Pioneer is bankrupt.

Now. whether Alexis is a separate but related shell may be the question.

[Guest]

Went by Colonials yard earlier today after spotting a CTA 2200 (#2263) on a flatbed truck going through the intersection of RT83 and Higgins. Was able to snap a couple pics. Seems like there is still activity going on at the old Colonial yard. All the doors around the complex are now marked "Alexis". The coach buses were all stuffed in the back of the yard while the school buses are up front.

[Guest]

Some of Colonials buses are being auction off Nov 23 in Downers Grove.

[twyztdmynd]

Cook County / Stroger Contract info...

http://www.chicagobusiness.com/article/20131119/NEWS03/131119747/whos-running-the-bus-service-at-cook-county-health#

[Busjack]

Some of Colonials buses are being auction off Nov 23 in Downers Grove.

Cook County / Stroger Contract info...

http://www.chicagobusiness.com/article/20131119/NEWS03/131119747/whos-running-the-bus-service-at-cook-county-health#

As I indicated, the question for the bankruptcy trustee (and there is one) is whether the Ceravolos are just shifting assets among corporate shells. Most of the buses listed for sale on the auction site were either high mileage (over 600K) or junk.

But unlike what the article said, I doubt that Cook County is a creditor, as I assume it paid for the service it got.

[Guest]

Wish I knew what all that meant! LOL!

[Busjack]

Wish I knew what all that meant! LOL!

Basically that the Tollway Authority got stiffed on tolls.

Also, if there any employees left, they are left with a claim against the bankruptcy estate. Of course, you and (I assume) the others on the Pace routes got out a long time ago.

[jajuan]

As I indicated, the question for the bankruptcy trustee (and there is one) is whether the Ceravolos are just shifting assets among corporate shells. Most of the buses listed for sale on the auction site were either high mileage (over 600K) or junk.

But unlike what the article said, I doubt that Cook County is a creditor, as I assume it paid for the service it got.

I had that same question about the Ceravolos brothers. With the other companies that can give shuttle bus services, I find it more than interesting that these guys owned Colonial and couldn't keep that company afloat, and now here they are principals in Alexis which has the current contract for shuttle bus service for Cook County Hospital.

[Busjack]

I had that same question about the Ceravolos brothers. With the other companies that can give shuttle bus services, I find it more than interesting that these guys owned Colonial and couldn't keep that company afloat, and now here they are principals in Alexis which has the current contract for shuttle bus service for Cook County Hospital.

At least with regard to the yard, a common tactic is to hold the real property in the persons' individual names, one reason being to flow through rental income without double taxation, but, not so obvious, to keep the land out of the corporate bankruptcy.

Putting stuff into little corporations minimizes the damage when one of those little entities goes bankrupt.* So long as there were not transfers of assets within 2 years or to defraud creditors,** that is legit. However, as I noted, it was for the bankruptcy trustee to raise that issue.

Apparently, Academy was a separate corporation to operate the Pace contracts, but it couldn't pay its help, even though one would assume that Pace was paying the contract. In that case, Pace just took over direct operation, instead of letting the lawyer create another corporation to run the contract.

_________

*For instance, a private party running a jewelry concession in department stores would put one store's counter in Mary 1, Inc., the next in Mary 2, Inc., etc. If Mary 245 Inc. went out out of business, it didn't affect the other 244.

**That essentially was the holdup in the Tribune bankruptcy, in that it was alleged that the second part of the leveraged buyout transferred property to the new lenders or former shareholders when the Tribune was bankrupt in the sense of not being able to pay its debts when due.

[artthouwill]

Drove by U.S. Cellular Field looking for the Boston Red Sox team bus. It was a Setra S417 Alexis coach. Funny that I thought those 417s were among the buses auctioned off but the link is gone now so I can't confirm.

[Busjack]

Drove by U.S. Cellular Field looking for the Boston Red Sox team bus. It was a Setra S417 Alexis coach. Funny that I thought those 417s were among the buses auctioned off but the link is gone now so I can't confirm.

The auction was for Colonial equipment. As previously discussed (starting about here), apparently Alexis is a different corporation, so that bankruptcy doesn't affect that.

Anyway, the auction seemed to be for equipment that was over 600,000 miles, so it offered a way to get rid of it.

[andrethebusman]

Alexis has taken over all useable Colonial buses. Recently saw 300 (Jersey 9), two different 800's (MC9's).

[andrethebusman]

At least the headline confirms that Colonial/Pioneer is bankrupt.

Now. whether Alexis is a separate but related shell may be the question.

Alexis has existed for a long time. There was at least one bus lettered Alexis in 2005. This is a case of two entities under common ownership with the bankrupt selling its assets to the non-bankrupt, probably for a "nominal amount" and leaving creditors holding the bag. But then, we are dealing with Colonia/Pioneer, aren't we?

[andrethebusman]

Channel 32 shows footage of white 8000s (originally RTA pumpkin GMC 4523s) at Rosemont. That must have been taken before 1993.

As for personal knowledge, in the late 90s, there were basically buses in the 8793-88teens range on the 600-606-616 routes (then run by Keeshin), and sometimes 2286 on 326. 696-699 were run with buses in the 2070 range, operated by a contractor other than Keeshin (either Colonial or Cook County School Bus). Keeshin also had the 626 contract at that time, and ran its own buses for a while (looked like second hand highway coaches), then got the 2120s, but then the service and the 2120s were turned over to Pace North Shore.

When Pace got the 2400s, some of South's Orion Is went to SW, and then when SW got its 6000s, most of the same buses then went to whoever had the Rosemont contract. Similarly, when North (Waukegan) got its 2400s, about 10 of its Orion I buses (original range 2321-2340) got scattered around the place (some went to South and others to North Shore), but most of them ended up with contractors. Academy also got 2372-2377 when 6156-6161 mysteriously materialized at NW in 2004, out of chronological sequence.

Also, as mentioned, Keeshin O'Hare had most of the contracts, but went out of business when its landlord sold out to the City of Chicago for O'Hare expansion. Some history of the routes is contained in Bill V's Suburban Transit Routes 600-640 and 690-699 pages, although he hasn't kept some parts of his site up as well lately. I wonder about his "2007" date for Academy taking over 696-699 from Cook County; I thought it was earlier.

One may also note (as Bill V. did) that Colonial operated 610 until 2005--that was with Colonial's own highway coaches, some of which were labeled Pioneer, but otherwise looked the same.

Finally, a bit of speculation--the reason contractors seem to get buses after divisions are done with them may be that the contracts impose on the contractors the obligation to maintain them. Pace may send them to Bus & Truck for an overhaul before sending them out, but then they become the contractor's responsibility. I saw that Academy had 2342 (usually a North Shore bus) for a time, but it is now sitting in the South Holland yard. Apparently Academy got the last out of it.

In the early days 606 was run by Robinson Coach. Usually with RTA 4523's, but sometimes a Robinson MC5C. 326 was run by Greyhound early on. Also usually 4523's, but sometimes a regular MC-8! Hound MIGHT have had 606 for a short time, too.

[Busjack]

... This is a case of two entities under common ownership with the bankrupt selling its assets to the non-bankrupt, probably for a "nominal amount" and leaving creditors holding the bag. But then, we are dealing with Colonia/Pioneer, aren't we?

As indicated, this was a bankruptcy auction, so there are both a bankruptcy trustee and bankruptcy judge to assure that creditors get what they get and there aren't any fraudulent transfers. So, if property were transferred withiin the requisite time before filing, Alexis would have been required to pay the fair value determined by the court to the estate (and hence creditors ) of Colonial. (If you want an explanation, here's one).

This is no different than the trustee in the Tribune bankruptcy going after those who got distributions from the leveraged buyout.

So, you have made an unsupported allegation.

The only thing you supported was why all the vehicles advertised for auction had high mileage.

[artthouwill]

For the past two weeks there have been four of the oldest "Alexis" coaches sitting in the rear of the American Sightseeing yard near 27th and Wabash.  They have not moved. 

UPDATE:  I checked the Illinois Secretary of  State website and did an LLC/Corp search for  Alexis.  They are not in good standing.  I guess that means they haven't paid up for the year yet.  

a

Edited August 11, 2015 by artthouwill
Update

[andrethebusman]

At last report Alexis had a "business address" at 137th and Kostner in Crestwood, in a unmarked building that is known to be home to Ralph's Coach and Starlight Tours. Several Alexis buses have been seen on the road within the last two months, including MC9 143 and one of the ex-Texas MC9's. The very, very old Van Hool 848 (one of two with that number at the same time in the yard a couple of years ago, I might add) was last seen at O'Hare Towing on Mannheim Rd, after being seen on the xway last winter in nice fresh gray paint. There is also an ex-Alexis MC9 in a yard west of Lafayette on 84th.

[artthouwill]

At last report Alexis had a "business address" at 137th and Kostner in Crestwood, in a unmarked building that is known to be home to Ralph's Coach and Starlight Tours. Several Alexis buses have been seen on the road within the last two months, including MC9 143 and one of the ex-Texas MC9's. The very, very old Van Hool 848 (one of two with that number at the same time in the yard a couple of years ago, I might add) was last seen at O'Hare Towing on Mannheim Rd, after being seen on the xway last winter in nice fresh gray paint. There is also an ex-Alexis MC9 in a yard west of Lafayette on 84th.

IIRC, 137th was the original address for Alexis way before the Colonial/Pioneer/Academy fiasco took place.  As a result, an earlier post indicates that Alexis slapped its name on the former Colonial garage and former Colonial buses and for a short time ran the Stroger Hospital shuttle.

REviewing an article posted earlier about the County awarding an emergency contract to "Alexis", it stated that it was a joint venture with the Cervalo brothers and attorney James Maher O'Rourke.  I wondered if J Maher was related to (or is the person) that once was with Continental Air Transport (when they had buses) before they divested their buses and started running as Airport Express. I thought that that person was Thomas Maher but I can't recall.

Article from Crain's on November 19, 2013.

http://www.chicagobusiness.com/article/20

The question still remains.  What is Alexis doing?  Are they liquidating?  Are they hiding from the repo man?  Will they try to "reorganize?"  Someone (you?) noted that these brothers started out with American Sightseeing so maybe those buses being in ASI's yard is no coincidence.

 

Edited August 11, 2015 by artthouwill

[artthouwill]

According to the  Illinois  Secretary of State,  Alexis  Luxury  Tours Incorporation  was dissolved  (involuntary  dissolution) on 11/11/16.