This is the decision on
reconsideration of the Railroad Retirement
Board regarding the continued status of
Cuyahoga Valley Railway Company and River
Terminal Railway Company as employers under
the Railroad Retirement Act (45 U.S.C. §
231, et seq.) (RRA) and the Railroad Unemployment
Insurance Act (45 U.S.C. § 351, et
Cuyahoga Valley was held to be an employer
under the Acts effective May 18, 1905, (B.A.
Number 4207). River Terminal was held to
be an employer under the Acts effective
December 8, 1909, (B.A. Number 4346). In
a decision dated December 6, 2002 (B.C.D.
No. 02-91), the Board held that these companies
had ceased to be employers as of May 17,
2002, based on the sale of their assets
to another company on that date.
In their request for reconsideration, the
companies advise that the two railroads,
along with three others,1
were wholly-owned subsidiaries of LTV Steel
Company, Inc. (LTV). One central management
group directed the business of the five
subsidiary railroads. On December 29, 2000,
LTV filed petitions for reorganization under
Chapter 11 of the Bankruptcy Code. LTV's
five subsidiary railroads, however, did
not seek bankruptcy protection and were
not part of the filing. On February 28,
2002, the Bankruptcy Court approved the
sale of most of LTV's assets relating
to its steelmaking business, including three
of its railroads (the Chicago Short Line,
the Cuyahoga Valley, and the River Terminal).
The CSL asset sale closed April 12, 2002.
The final closing on the sale of the assets
of the Cuyahoga Valley and River Terminal
was May 17, 2002.
Eight remaining salaried employees of the
central management group who were compensated
by River Terminal continued to perform dissolution
functions for the orderly close of common
carrier business after May 17, 2002. Certain
bargaining unit employees of both companies
who had earned vacation for the year 2002
under the collective bargaining agreements
elected to receive periodic vacation payments
throughout the year. In light of these facts,
the Board is requested to change the coverage
termination date to December 31, 2002.
Accordingly, the Board holds that Cuyahoga
Valley Railway Company and River Terminal
Railway Company ceased to be employers under
the Railroad Retirement and Railroad Unemployment
Insurance Acts effective with the close
of business on December 31, 2002.2
The request for reconsideration is granted.