Attachment Attachment 1

This document pretains to ITC-T/C-20131105-00294 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2013110500294_1019166

Notification by KeyArt Comm., Inc.           Attachment 1
of Pro Forma Transfer of Control
214 Authority – ITC-214-19970402-00188

                                          Answer to Question 10

In Attachment 1, please respond to paragraphs (c) and (d) of Section 63.18 with respect to the assignor/transferor
and the assignee/transferee.

63.18(c)

        Transferor:

                 KeyArt Comm., Inc.
                 Mr. Kelly R. Gies
                 President
                 100 Fenwick Street
                 P.O. Box 240
                 Keystone, Nebraska 69144
                 Telephone:    308-726-2281
                 Facsimile:    308-726-3642

        Transferee:

                 Keystone-Arthur Telephone Company
                 Mr. Kelly R. Gies
                 President
                 100 Fenwick Street
                 P.O. Box 240
                 Keystone, Nebraska 69144
                 Telephone:    308-726-2281
                 Facsimile:    308-726-3642

                 Copies of all correspondence, notices, and inquiries should also be addressed to:

                  Thomas J. Moorman
                  Woods & Aitken LLP
                  2154 Wisconsin Avenue, NW, Suite 200
                  Washington, DC 20007
                  Telephone: (202) 944-9502
                  Facsimile:   (202) 944-9501

63.18(d)

        KeyArt Comm., Inc. holds an International Telecommunications Certification for global
and/or limited global resale service, File No. ITC-214-19970402-00188, which was granted on
May 22, 1997.


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Notification by KeyArt Comm., Inc.             Attachment 1
of Pro Forma Transfer of Control
214 Authority – ITC-214-19970402-00188



                                            Answer to Question 11
Does any entity, directly or indirectly, own at least ten (10) percent of the equity of the assignee/transferee as
determined by successive multiplication in the manner specified in the note to Section 63.18(h) of the rules?

If you answered "Yes" to this question, provide in Attachment 1, the name, address, citizenship, and principal
businesses of each person or entity that directly or indirectly owns at least ten (10) percent of the equity of the
assignee/transferee, and the percentage of equity owned by each of those persons or entities (to the nearest one
percent).

         Since the approval of the original international Section 214 authority by the Commission,
the owners of KeyArt Comm., Inc. (“KACI”) undertook a corporate reorganization that, as
explained below, resulted in KACI becoming a wholly-owned subsidiary of Keystone-Arthur
Telephone Company (“KATC”) which the owners of KACI also controlled. Specifically, on or
about October 15, 2002, the four individuals identified in the application -- Martha D. Gies, Lois
L. Vath, Mabel C. Statler, and William B. Hill – each an owner of 25% of the then issued and
authorized stock of KACI and thus owning the controlling interests in KACI transferred their
ownership interests in KACI to KATC. On such date, these same four individuals or their heirs
(Ms. Gies has passed away) owned the controlling stock interests in KATC. Thus, the transfer of
the controlling interests in KACI to KATC effected a corporate reorganization as provided for as
a presumptively pro forma change following which KATC owned 91.2% of the issued and
outstanding shares of KACI. See 47 C.F.R. § 63.24(d) (“Note 2 to Paragraph (d): . . . Corporate
reorganization that involves no substantial change in the beneficial ownership of the corporation.
. . .”).

       On September 2, 2009, KATC acquired an additional 1.45% of KACI’s issued and
outstanding shares. Likewise, on January 14, 2010, KATC also acquired an additional 1.45% of
KACI’s issues and outstanding shares. Finally, on January 30, 2013 KATC acquire the
remaining 5.9% of KACI’s issued and outstanding shares causing KACI to become a wholly-
owned subsidiary of KATC.

                                            Answer to Question 13

Provide in Attachment 1 a narrative of the means by which the proposed assignment or transfer of control will take
place. In circumstances of a substantial assignment or transfer of control pursuant to Section 63.24(e), where the
assignor seeks authority to assign only a portion of its U.S. international assets and/or customer base, please specify
whether the assignor requests authority to continue to operate under any or all of its international Section 214 File
Nos. after consummation; and, if so, please specify in Attachment 1 each File No. it seeks to retain in its own name.

        As indicated above, KeyArt Comm., Inc.’s then existing shareholders transferred those
shares to Keystone-Arthur Telephone Company (“KATC”), thus effecting a “[c]orporate
reorganization that involved no substantial change in the beneficial ownership” of KeyArt
Comm., Inc. (“KACI”). With specific reference to Questions 3.d and 22 through 24 of the
electronically-filed application, KACI and KATC (the “Companies”) also provide this
explanation in amplification and support thereof.
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Notification by KeyArt Comm., Inc.       Attachment 1
of Pro Forma Transfer of Control
214 Authority – ITC-214-19970402-00188



                                 Answer to Question 13 (cont’d)

         In preparation for a sale of the interests of KATC, it was discovered that notification of
this pro forma transfer of control was not submitted to the Commission in the thirty (30) day
period provided for 47 C.F.R. §63.24(f)(2). The Companies regret this error. Recognizing the
error, the Companies file to correct this inadvertent oversight.




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Document Created: 2013-11-05 17:28:38
Document Modified: 2013-11-05 17:28:38

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