Ground transportation company Coach USA has filed for Chapter 11 to sell its assets after its ridership failed to recover in the wake of the COVID-19 pandemic.

Private equity firm Variant Equity Advisors bought the company in 2019 and loaded it with an asset-based loan (ABL) just ahead of the pandemic.

Coach has lined up three stalking horse bids for most of its assets, with The Renco Group Inc bidding USD 130m for a dozen business lines, AVALON Transportation offering USD 14.8m for four divisions, and ABC Bus Inc offering USD 2.34m for 143 of the debtor’s double-deck buses and other assets. The company aims to fund the case with USD 20m in debtor-in-possession (DIP) financing that requires the company to complete one or more asset sales by 19 August.

The company is simultaneously commencing a restructuring in Canada under the Companies’ Creditors Arrangement Act.

Judge Mary Walrath of the US Bankruptcy Court for the District of Delaware has scheduled a first day hearing for tomorrow (13 June) at 11am ET.