Attachment Attachment 2

This document pretains to ITC-ASG-20190327-00093 for Assignment on a International Telecommunications filing.

IBFS_ITCASG2019032700093_1640093

                                    Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                              Washington, D.C. 20554


                                                        )
 In the Matter of the Joint Application of              )
                                                        )
 CMC Telecom, Inc.— Debtor in Possession,               )
                                                        )    WC Docket No.
        Transferor                                      )
 and                                                    )
                                                        )    IB File No.
 CMC Telecom and Internet, Inc.                         )
                                                        )
        Transferee                                      )
                                                        )
 Pursuant to Section 214 of the                         )
 Communications Act of 1934, as amended,                )
 for Approval of the Assignment of the Domestic         )
 and International Section 214 Licenses of              )
 CMC Telecom, Inc.—Debtor in Possession,                )
 To CMC Telecom and Internet, Inc.                      )
                                                        )



                                    JOINT APPLICATION

       CMC Telecom, Inc.—Debtor in Possession ("CMC DIP") and CMC Telecom and Internet,

Inc. ("CMCTII)(collectively "Joint Applicants") hereby request, pursuant to § 214 of the

Communications Act of 1934, as amended, 47 USC 214, and §§ 63.04 and 63.24 of the Federal

Communications Commission‘s ("Commission") Rules, 47 CFR 63.04 and 63.24, approval of

domestic and international § 214 authorization for the transfer of the Section 214 licenses held by

CMC DIP to CMCTI. Information addressing the requirements of Commission Rule 63.04(a)(6)

through (12) (47 CFR 63.04(a)(6) through (12)), is set forth in Attachment A to this Joint

Application.


I.     INTRODUCTION AND SUMMARY OF TRANSACTION

A.     The Joint Applicants

       CMC Telecom, Inc.—Debtor in Possession

       CMC Telecom, Inc.—Debtor in Possession ("CMC DIP") (FRN: 0009881301) is a

privately—held Michigan corporation located at 107 W Michigan Ave, 4‘" Floor, Kalamazoo, MI

49007. A summary of the services provided by CMC DIP is set forth in Attachment A.

       CMC Telecom and Internet,Inc.

       CMC Telecom and Internet, Inc. ("CMCTI") (FRN: 0027887603) is a privately held

Michigan corporation located at 107 W Michigan Ave. 4"" Floor, Kalamazoo, MI 49007. CMCTI

is owned by Easton Telecom Services, LLC and NRC Runoff, LLC. A summary of the services

provided by CMCTI is set forth in Attachment A.

B.     Summary of Transaction

       On July 2, 2015, CMC Telecom, Inc. filed a voluntary Chapter 11 bankruptcy petition

under Title II of the United States Code in the United States Bankruptcy Court for the Eastern

District of Michigan ("Bankruptcy Court"). Accordingly, CMC DIP is presently operating as a

debtor—in—possession under the Bankruptcy Court‘s oversight.

       NRC Runoff, LLC ("Manager" or "NRC") and CMC Telecom, Inc. as a Chapter 11

Debtor—in—Possession, Eastern District of Michigan, Southern Division, bankruptcy case no. 15—

50082 ("Company") made and entered into a Management Agreement under which NRC Runoff,

LLC, as Manager, was appointed to manage the Business on behalf of the Company.

       NRC Runoff, LLC and CMC Telecom, Inc. Debtor—in—Possession entered into an Asset

Purchase Agreement whereby NRC would purchase from CMC DIP, including but not limited to,

the following: (a) all customers, services equipment, contracts, leases, circuits, collocations; and


(b) all PUC/PSC/FCC licenses, CPCNs and tariffs authorizing CMC DIP to conduct

telecommunications services business.

        On September 28, 2017 a Motion for Sale of Property under Section 363(b) by Private Sale

was filed by Bankruptcy Trustee Samuel D. Sweet. On October 10, 2017 the Bankruptcy Court

issued an Order Granting Trustee‘s Motion for Authority to Sell Assets by Private Sale Free and

Clear of All Liens and Encumbrances with, if any, Attaching to the Proceeds of Sale Pursuant to

11 U.S.C. 363.

       By this Application, pursuant to 47 CFR 63.24, Joint Applicants are seeking approval from

the Commission for approval for the tramsfer of the Section 214 Authorizations from CMC DIP

to CMCTI. If approved, CMCTI represents that it will continue to provide high quality, affordable

services that are uniquely tailored to the needs of existing and prospective customers. If this Joint

Application is approved, CMCTI represents that there will be no adverse effect on CMCTT‘s ability

to serve existing customers of CMC DIP.         Joint Applicants submit that granting this Joint

Application is in the public interest.

IL.    INFORMATION REQUIRED BY § 63.18 OF THE COMMISSION‘S RULES
       (SECTION 63.24(e) INFORMATION)

       As required by 47 CFR 63.24(e)(2), this Joint Application provides the information

required under 47 CFR 63.18(a) through (d) for both the transferor and the transferees, and the

information required in 47 CFR 63.18(h) through (p) only for the transferees (for international

transfer of control). Pursuant to 47 CFR 63.04(b), additional information required by 47 CFR

63.04(a)(6) through (12) of the Commission‘s Rules (for domestic transfer of control) is contained

in Attachment A, hereto.


(a) Name, addresses, and telephone number of each Applicant:

   Transferor                                        FRN: 0009881301
   CMC Telecom, Inc.—Debtor in Possession                    0021424346
    107 W Michigan Ave, 4°" Floor
   Kalamazoo, MI 49007
   Phone: (269) 381—8893

   Transferee                                        FRN: 0027887603

   CMC Telecom and Internet, Inc.
    107 W Michigan Ave, 4*" Floor
   Kalamazoo, MI 49007
   Phone: (269) 381—8893

(b) Government, state, or territory under the laws of which each corporate or
    partnership applicant is organized.

   CMC DIP is a corporation organized under the laws of the State of Michigan. CMCTI

is organized under the laws of the State of Michigan.

(c) The name, title, post office address, and telephone number of the officer or contact
    point, such as legal counsel, to whom correspondence concerning the Application
    is to be addressed:

   For Transferor and Transferee:

   Patrick D. Crocker, Attorney
   Crocker & Crocker
    107 W Michigan Ave, 4*" Floor
   Kalamazoo, MI 49007
   Phone: (269) 381—8893
   patrick@crockerlawfirm.com

(d) A statement as to whether the Applicant has previously received authority under
    Section 214 of the Act and, if so, a general description of the categories of facilities
    and services authorized (i.e. authorized to provide international switched services
    on a facilities basis)


           CMC DIP holds authority to provide global or limited global resale services under

File No. ITC-214-20000421-00229. CMC DIP also holds blanket domestic operating authority.

CMC DIP does not intend to retain these authorizations.

           CMCTI does not currently hold international or domestic § 214 authority, but is

requesting the assignment of CMC DIP’s authorities with this application.

       (h) The name, address, citizenship and principal business of any person or entity
          that directly or indirectly owns at least ten percent of the equity of the
          transferee, and the percentage of equity owned by each of those entities (to the
          nearest one percent)

          The following entities owns 10% or more of the equity of CMCTI:

              Name:                 NRC Runoff, LLC
              Address:              107 W Michigan Ave, 4th Floor
                                    Kalamazoo, MI 49007
              Citizenship:          United States
              Principal Business:   Telecommunications
              Percent Equity:       49%

              Name:                 Easton Telecom Services, LLC
              Address:              3046 Brecksville Road #A
                                    Richfield, OH 44286
              Citizenship:          United States
              Principal Business:   Telecommunications
              Percent Equity:       51%

          No other person or entity holds more than 10% direct or indirect equity of CMCTI.

          The following individual owns 10% or more of the equity of NRC Runoff, LLC.

              Name:                 Krista K. Crocker
              Address:              107 W Michigan Ave, 4th Floor
                                    Kalamazoo, MI 49007
              Citizenship:          United States
              Principal Business:   Telecommunications Management
              Percent Equity:       100%

          No other person or entity holds more than 10% direct or indirect equity of NRC
Runoff.


          The following individuals own 10% or more direct or indirect equity of Easton Telecom
          Services, LLC.

               Name:                   Robert E. Mocas
               Address:                3046 Brecksville Road #A
                                       Richfield, OH 44286
                Citizenship:           United States
               Principal Business:     Telecommunications
               Percent Equity:         50%

               Name:                   Heidi H. Mocas
               Address:                3046 Brecksville Road #A
                                       Richfield, OH 44286
               Citizenship:            United States
               Principal Business:     Telecommunications
               Percent Equity:         50%

       No other person or entity holds more than 10% direct or indirect equity of Easton Telecom
        Services, LLC.

       (i) A certification as to whether or not the transferee is, or is affiliated with, a foreign
           carrier. The certification shall state with specificity each foreign country in which
           the applicant is, or is affiliated with, a foreign carrier.

       As evidenced by the certification attached to this Application, CMCTI certifies that it does

not have any affiliation with a foreign carrier. CMCTI will not become affiliated with any foreign

carrier as a result of the transfer of ownership/control.

       (J) Foreign carrier and destination countries.

       As evidenced by the certification attached to this Application, CMCTI certifies that neither

it, nor any affiliate, seeks to provide international telecommunications services to any destination

country for which any of the statements in §§ 63.18 (J)(1)—(4), inclusive, of the Commission‘s

Rules (47 CFR § 63.18(j)(1)—(4), inclusive) is true.

       (k) Not applicable.

       (1) Not applicable.

       (m) Not applicable.


       (n) Certification that the transferee has not agreed to accept special concessions
           directly or indirectly from any foreign carrier with respect to any U.S.
           international route where the foreign carrier possesses market power on the
           foreign end of the route and will not enter into such agreements in the future.

       As evidenced by the certification attached to this Application, CMCTI certifies that neither

it, nor any affiliate has agreed, and will not agree in the future, to accept any direct or indirect

special concessions, from a foreign carrier where the foreign carrier possesses market power on

the end of the route and will not enter into any agreements in the future.

       (0) Certification pursuant to 47 CFR 1.2001 through 1.2003 that no party to the
           Application is subject to a denial of Federal benefits pursuant to Section 5301 of
           the Anti—Drug Abuse Act of 1988.

       As evidenced by the certification attached to this Application, CMCTI certifies, pursuant

to 47 CFR 1.2001 through 1.2003, that no party to the Joint Application, is subject to a denial of

Federal benefits pursuant to §5301 of the Anti—Drug Abuse Act of 1988.

       (p) A statement as to how the Application fits into one or more of the presumptive
           streamlines categories in this section or why it is otherwise appropriate for
           streamlined treatment.

       This Application is eligible for streamlined processing under § 63.12 of the Commission‘s

Rules, 47 CFR § 63.12, because none of the exceptions to streamlined processing specified in (1)

through (3) of § 63.12(c) applies.


III.   PUBLIC INTEREST STATEMENT

       The transaction described herein serves the public interest, convenience and necessity.

CMC DIP used state—of—art technology to meet their customers‘ sophisticated communications

needs. CMCTI will continue to provide high quality telecommunications services to both existing

customers of CMC DIP and prospective customers. The transaction has no adverse impact on

customers, and will not trigger any rate increases. As the Joint Applicants are relatively small


entities, the transaction has not and should not lead to the concentration of any market share, nor

will it present any anticompetitive issues, or eliminate a competitor. If this Application is granted,

CMCTI will continue to provide services to CMC DIP‘s customers without change or interruption,

and the transfer of control will have no impact on their customers. As such, Joint Applicants submit

that granting this Joint Application is in the public interest.

V.      CONCLUSION

        As demonstrated in this Joint Application, Joint Applicants submit that the public

interest, convenience, and necessity would be furthered by the grant of this Application.



                                            CMC TELECOM AND INTERNET, INC.
                                            CMC TELECOM, INC. — DEBTOR IN POSSESSION

                                                         ze                    _

                                            Patrick lg%r%k@
                                            Crocker       rock
                                            107 W Michigan Ave, 4°" Floor
                                            Kalamazoo, MI 49007
                                            (269) 381—8893
                                            patrick@crockerlawfirm.com
                                            Attorneys for Joint Applicants




Dated: 3! Zg[; 2


                                   ATTACHMENTS:

Certification of Transferor

Certification of Transferee

Attachment A—Information required by 47 CFR § 63.04


                              CERTIFICATION OF TRANSFEROR



                 I hereby certify that the statement of facts in the foregoing Joint Application

 relating to and on behalf of CMC Telecom, Inc. — Debtor in Possession are true, complete and

 correct to the best of my knowledge and are made in good faith. I declare under penalty of perjury

_ under the laws of the United States that the foregoing is true and correct.




                                                        CMC Telecom, Inc. —Debtor in Possession



                                                          \
                                                              .   j    h



                                                    By: ”QV\
                                                                      N
                                                          _L.||       I\
                                                                           _ At]
                                                          Krista K. @er
                                                          Managing Member of NRC Runoff, LLC
                                                          Marl‘ager of CMC Telecom, Inc.
                                                          Debtor in Possession



 Date:   5[ Zg—z 14


                             CERTIFICATION OF TRANSFEREE



       I hereby certify that the statements in the foregoing Joint Application on behalf of CMC

Telecom and Internet, Inc. are true, complete, and correct to the best of my knowledge and are

made in good faith. I declare under penalty of perjury under the laws of the United States that the

foregoing is true and correct.

       I declare under penalty of perjury under the laws of the United States that neither CMC

Telecom and Internet, Inc., nor any affiliate has agreed, or will agree in the future, to accept any

direct or indirect special concessions, as defined by 47 CFR § 63.14(b), from a foreign carrier or

administration with regards to traffic or revenue flows between the United States and any foreign

countries they are authorized to service.

       I certify under penalty of perjury under the laws of the United States that pursuant to 47

CFR § 1.2001 through § 1.2003, CMC Telecom and Internet, Inc. and its affiliates are not subject

to denial of Federal benefits pursuant to § 5301 of the Anti—Drug Abuse Act of 1988.

       I certify that neither CMC Telecom and Internet, Inc. nor its affiliates has any affiliation

with a foreign carrier.   Further, neither CMC Telecom and Internet, Inc., nor its affiliates will

become affiliates with any foreign carrier as a result of the assignment of the 214 license to CMC

Telecom and Internet, Inc.

       I certify that CMC Telecom and Internet, Inc., does not, directly or through any affiliate,

seek to provide international telecommunications services to any destination where: (1) CMC

Telecom and Internet, Inc. is a foreign carrier in that country; or (2) controls a foreign carrier in

that country; or (3) any entity that owns more than 25% of CMC Telecom and Internet, Inc.

controls a foreign carrier in that country; or two or more foreign carriers (or parties that control


foreign carriers) own, in the aggregate, more than 25% of CMC Telecom and Internet, Inc. and

are parties to, or the beneficiaries of, a contractual relation affecting the provision or marketing of

international basic telecommunications services in the United States.




                                                       CMC Telecom and Internet, Inc.

                                                                                5
                                                         ’%%4 i/""’“"""—
                                                             KristaK. CrefigrPresident


Date: 5[2§’( z K;Z?                                                 i]      &


                                        Attachment A

                      (Responses to 47 CFR §63.04(a)(6) through (a)(12))


       (6) A description of the transaction—§63.04(a)(6).

               See Section L.B. ("Summary of Transaction") of the Joint Application.

       (7)     A description of the geographic areas in which the transferor and transferee
               (and their affiliates) offer domestic telecommunications services, and what
               services are provided in each area— § 63.04(a)(7).

               A.     CMC Telecom, Inc. Debtor in Possession

              CMC DIP provides competitive local exchange services and toll resale services

throughout the State of Michigan

               B.     CMC Telecom and Internet, Inc.

               CMCTI does not currently provide telecommunications services, but will provide

all services currently offered by CMC DIP.

       (8) A statement as to how the Application fits into one or more of the presumptive
          streamlined categories in this section or why it is otherwise appropriate for
          streamlined treatment—— §§ 63.04(a)(8).

       With respect to domestic authority, this Joint Application fits into all the presumptive

streamlined categories outlined in § 63.03(b).

       (9) Identification of all other Commission Applications related to the same
           transaction—§§ 63.04(a)(9).

       Through this Joint Application, Joint Applicants are seeking authority with respect to both

international and domestic Section 214 authorizations (this Joint Application is being separately

and concurrently flied with respect to both types of authorities in compliance with Commission

Rule 63.04(b), 47 CFR Section 63.04(b)).


       (10) A statement of whether the applicants are requesting special consideration
           because either party to the transaction is facing imminent business failure——§§
           63.04(a)(10).

       The Joint Applicants are requesting special consideration of this Joint Application, as the

approval for transfer sought is part of the bankruptcy proceedings discussed herein.

       (11) Identification of any separately filed waiver requests being sought in conjunction
           with the transaction—§§ 63.04(a)(Il).

       As of the date of the filing of this Joint Application, no separate waiver request has been

sought in conjunction with the transaction.

       (12) A statement showing how grant of the Application will serve the public interest,
           convenience and necessity, including any additional information that may be
           necessary to show the effect of the proposed transaction on competition in
           domestic markets—§§ 63.04(a)(12).

       See Section III ("Public Interest Statement") in the Joint Application.



Document Created: 2019-03-26 10:13:00
Document Modified: 2019-03-26 10:13:00

© 2024 FCC.report
This site is not affiliated with or endorsed by the FCC