Leading bidder for 46 taxi medallions

Inshur

Brooklyn

Well-Known Member
The trustee liquidating part of New York taxi mogul Evgeny “Gene” Freidman’s holdings has found a bidder offering $7.7 million ahead of a planned auction to help repay former lender Citibank .

Bankruptcy trustee Greg Messer said in court papers that a stalking horse, or lead, bidder had offered $167,500 for each of 46 taxi medallions owned by Mr. Freidman’s companies that have been stranded in the two-year-old bankruptcy case.

The stalking-horse offer, which requires bankruptcy court approval, would put a floor under the medallions’ price at a public auction scheduled to take place Sept. 18 in East Elmhurst, N.Y. Details about the bidder, MGPE Inc., weren’t available in court papers, and lawyers involved in the matter either couldn’t be reached or didn’t respond to requests for comment.


The New York City Taxi and Limousine Commission issues medallions, which allow a vehicle’s driver to pick up street hails and carry fare-paying passengers. The city first auctioned medallions in 1937; the auctions hit a high of $1.3 million in 2013. The value of medallions has dropped with the rise of the app-based ride-sharing companies like Uber Technologies Inc. and Lyft Inc.

A native of Russia, Mr. Freidman took over his father’s taxi business in the mid-1990s to grow it into one of the New York City’s largest taxi fleets. Mr. Freidman, who at the height of his business owned more than 800 medallions, had pegged the value of his medallions at somewhere between $250,000 and $500,000 each in earlier court papers.


A taxi medallion on a New York City cab.PHOTO: RICHARD B. LEVINE/ZUMA PRESS
The embattled taxi mogul later became the public face of opposition to emerging industry competitors such as ride-hailing companies. Major taxi fleets in San Francisco, Washington and Chicago have filed for bankruptcy amid the trouble, and banks that specialize in lending against medallions, such as Signature Bank ,have taken hundreds of millions of dollars in write-downs.

In the summer of 2015, Mr. Freidman put a portion of his companies that own medallions and vehicles under chapter 11 protection in Brooklyn, N.Y. The bankruptcy filing came amid an escalating dispute with Citibank, which tried to seize assets to make good on what it said were late payments under approximately $34 million in loans.

Mr. Freidman disputed that he made late payments and accused Citibank officials of trying to sabotage his operations while courting business from a popular ride-sharing app. Citibank denied the accusations, and U.S. Bankruptcy Judge Carla Craig ordered the installation of a chapter 7 trustee at the bank’s request.

Proceeds from the public auction are earmarked under an earlier court stipulation for paying off Citibank, with $1 million set aside for other debts connected to various taxi companies under chapter 11.

Judge Craig has scheduled a Sept. 25 hearing in U.S. Bankruptcy Court in Brooklyn to consider the auction results.



https://www.wsj.com/articles/new-york-taxi-moguls-medallions-find-a-buyer-1504737484



Now the question is.. who is MGPE inc, what their intentions are.. and what do they know that no one else does that they're looking to take over 46 medallions all at once.
 
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Radio_group

Well-Known Member
And why do you care ? If you have money buy them all. At this point price of medallion is pure speculation., with grow of app based companies Myself i would not pay more than $ 25.000 for this piece of metal. This days taxi is like yellow uber .Same clients going to same places .At Uber we face a lot of bs from Uber, in yellow a.lot of bs from TLC .Pure and simple Same money different color of a car .At the end of a day same headache and hemmoroids
 

Brooklyn

Well-Known Member
And why do you care ? If you have money buy them all. At this point price of medallion is pure speculation., with grow of app based companies Myself i would not pay more than $ 25.000 for this piece of metal. This days taxi is like yellow uber .Same clients going to same places .At Uber we face a lot of bs from Uber, in yellow a.lot of bs from TLC .Pure and simple Same money different color of a car .At the end of a day same headache and hemmoroids
Because... why not? I don't get your reasoning?
 

Radio_group

Well-Known Member
What i said is : TLC regulates how.many medallions they sell, based on demand and city grow population , at least that how it was . More demand , more people , more medallions they used to sell at auction. Now with uber /lyft/ via/ juno.there is no limit. They do not have specific numbers of cars ,they will allow to work on NYC streets,There is the the same cake,just more faces to feed
 

Brooklyn

Well-Known Member
What i said is : TLC regulates how.many medallions they sell, based on demand and city grow population , at least that how it was . More demand , more people , more medallions they used to sell at auction. Now with uber /lyft/ via/ juno.there is no limit. They do not have specific numbers of cars ,they will allow to work on NYC streets,There is the the same cake,just more faces to feed

We all know that.........................

The question I'm putting out there is if that's the case then why is there a company spending $7.7 million on these medallions? and when you factor cars and etc.. about $10 million?
 

Radio_group

Well-Known Member
Why ? Look at the stock market , and try to.make sense of it
Why people buying shares of dying companies ? They think ,they will recover..Too bad they did not..Here is the same example of some hedge fund ,doing the same thing. You think they want to own those medallions . I do not think so. If the price pop up , thsy will sell
 

Brooklyn

Well-Known Member
Why ? Look at the stock market , and try to.make sense of it
Why people buying shares of dying companies ? They think ,they will recover..Too bad they did not..Here is the same example of some hedge fund ,doing the same thing. You think they want to own those medallions . I do not think so. If the price pop up , thsy will sell

I get your point but the fact that these guys have to operate the medallions and not allowed to just sit on them is the difference. They can't just buy them and hold onto them. They need to buy the cars and operate these medallions. Stocks you can just sit and wait.. and speaking of the stock market if you're at that belief then why aren't they just investing $10 million into that? kind of a bold move to take $10 million and toss it at some medallions and operate them while you say are going to be in Central park in a few years.
 

Nats121

Well-Known Member
Taxi medallions violate the 14th amendment of the US Constitution, and should be abolished.

They also violate one of the core values of this country, which is equal opportunity to pursue the American Dream.

Of course, equal opportunity is not the same as equal results.
 

maximumuber

Well-Known Member
What i said is : TLC regulates how.many medallions they sell, based on demand and city grow population , at least that how it was . More demand , more people , more medallions they used to sell at auction. Now with uber /lyft/ via/ juno.there is no limit. They do not have specific numbers of cars ,they will allow to work on NYC streets,There is the the same cake,just more faces to feed


TLC should of regulate the pricing of these medallions. If the medallions was affordable to the average driver, most driver would stayed with yellow and not flock over to the apps. Now that the apps have so many drivers, they decide to lower rates. At this point the city and TLC have to figure out a way to bring majority of drivers back to yellow. One solution I think is to regulate the pricing of medallions and change policies on the medallions. Such as it must be owner operated. I never understood why they put a cap on medallions, but yet there is no cap on app drivers. If there was no cap on medallions I dont think it would reach a 6 figure, yet alone a 7 figure price tag. The city and TLC needs to sort this out before yellow medallions become extinct and the apps become a monopoly.
 

TwoFiddyMile

Well-Known Member
What i said is : TLC regulates how.many medallions they sell, based on demand and city grow population , at least that how it was . More demand , more people , more medallions they used to sell at auction. Now with uber /lyft/ via/ juno.there is no limit. They do not have specific numbers of cars ,they will allow to work on NYC streets,There is the the same cake,just more faces to feed
Bullshit!
 

Brooklyn

Well-Known Member
Taxi medallions violate the 14th amendment of the US Constitution, and should be abolished.

They also violate one of the core values of this country, which is equal opportunity to pursue the American Dream.

Of course, equal opportunity is not the same as equal results.
Lol.. how so?
TLC should of regulate the pricing of these medallions. If the medallions was affordable to the average driver, most driver would stayed with yellow and not flock over to the apps. Now that the apps have so many drivers, they decide to lower rates. At this point the city and TLC have to figure out a way to bring majority of drivers back to yellow. One solution I think is to regulate the pricing of medallions and change policies on the medallions. Such as it must be owner operated. I never understood why they put a cap on medallions, but yet there is no cap on app drivers. If there was no cap on medallions I dont think it would reach a 6 figure, yet alone a 7 figure price tag. The city and TLC needs to sort this out before yellow medallions become extinct and the apps become a monopoly.
Don't forget the cap is also controlled by traffic and health departments.. they determine if the cabs will cause more emissions and traffic and etc..

FHV industry came up after the taxi industry. Cabs used to be by radio then they split the two to separate businesses.
 

TwoFiddyMile

Well-Known Member
We all know that.........................

The question I'm putting out there is if that's the case then why is there a company spending $7.7 million on these medallions? and when you factor cars and etc.. about $10 million?
Because there's still business, and $167,000 is a stone cold bargain for an NYC medallion. It will go back up over $500,000 again within a few years.
You guys and your fantasies about the ultimate.death of taxis is poppycock.
I'm grossing $1400 per week in CHARLOTTE which is a dead market.

A tallented hack in NY can still gross $2000 to $4000 per week based on experience and hustle.
You guys are pathetic.
How's that Uber working out for you, and your dying car?
 

Fubernuber

Well-Known Member
Tlc will move against uber sooner than later. Anyone who thinks ubers illegal and illicit opperations will go unpunished is misguided. All good things come to an end. Ubers end will come by means of an economic downturn and constant lawsuits. This is the problem with a giant corporation that diaplaced hundreds of thousands if underpaid and unhappy drivers from their crappy jobs into even worsw positions. They have hundreds of thousands workers who want them to fail. Ita not rockett science. 180 days of change is simply a trial to change the toxic nature between uber and driver.
 

burgerflipper

Well-Known Member
what i dont see anyone mentioning is the possibility that de blasio or cuomo will decide to copy westchester and abolish the tlc. that will be the death of taxis.
 
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