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CASE PROFILE: Coach USA to sell assets in Chapter 11 backed by three stalking horse bids, unable to recover from pandemic travel crash

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.

Coach USA First Day Stats



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