Valleywide : Transfer of Taxi Permit Is Urged
Los Angeles transportation officials recommended Friday transferring a permit for taxi service in the San Fernando Valley away from a bankrupt Burbank-based firm and awarding it to a company interested in taking over the firm.
United Independent Cab Co. has offered to buy the bankrupt Babaeian Transportation Co. for $1.4 million and has requested Babaeian’s city franchise permit.
Babaeian won a taxi permit in 1992 to operate San Fernando Valley Checker Cab, one of only two taxi firms in the Valley. But last year the company filed for bankruptcy protection after transportation officials threatened to revoke the permit.
City transportation officials charged that the firm failed to provide computerized dispatching and seven wheelchair-accessible cabs--services promised under its operating agreement. But the bankruptcy protection kept city officials from revoking the permit.
Dennis I. Simon, the bankruptcy trustee appointed to the case, ordered an auction for the taxi firm on March 12. The highest bid was made by United Independent, according to city officials.
Babaeian also operates taxi firms in Pasadena and Glendale, which United Independent would also take over if the transfer is approved.
The transfer is subject to approval by the City Council, which is expected to consider the issue in April.
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