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B-193966 1 (1979-04-12)

handle is hein.gao/gaobadhdb0001 and id is 1 raw text is: .DECISION FILE: B-193966 CATEApril 12, 1979 MATTER OF: Ship-Rite Transporters, In c.6 - DIGES: c 'melr fC 4rre,47C's 0 D IG EST: Even though corporation and debtor corporation were formed by same officers and shareholders, acquisition by corporation of operating rights of debtor and carrying on of debtor's business with same personnel do not establish that the purchasing corporation is mere continuation of selling corporation and do not justify deductions from monies due corporation for overcharges collected by debtor, where there is evidence that corporation was in corporate existence for several years prior to acquisition, transfer was accomplished through formal administrative proceedings for fair consideration in cash, and debtor remains in corporate existence. B-191129, September 8, 1978, distinguished. In a letter of January 17, 1979, Alan D. Gould, President of Ship-Rite Transporters, Inc. (Ship-Rite), 210 Verdi Street, Farmingdale, New York, keques sreview by the Comptroller General of action taken by the eneral Services Administration (GSA) in A recovering by deduction from freight charges otherwise due Ship- Rite, alleged overcharges billed and collected by Empire Household ) Shipping Company of New York, Inc. (Household). A deduction action constitutes a settlement within tEe meaning of Section 201(3) of the General Accounting Office Act of 1974. 49 U.S.C. § 66(b) (Supp. V, 1975). Under regulations implementing Section 201(3) of the Act, a deduction action constitutes a reviewable settlement * action (4 C.F.R. §§ 53.1(b)(1) and 53.2 (1978)); Ship-Rite's letter complies with the criteria for requests for review of such an action. 4 C.F.R. § 53.3 (1978). The validity of the overcharges is not in issue; the issue for resolution is whether it was proper for GSA to make the deduc- tions of $5,367.43 from monies due Ship-Rite. While GSA apparently recognizes that Household is the debtor, GSA contends that the corporation known as Ship-Rite is the mere continuation of the corporation known as Household. The-facts relied on by GSA for its contention are derived from the record in Interstate Commerce Commission (ICC), Finance Docket No. 28461, in which the ICC's THE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. .C. 20549

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