October 9, 2024

DealBook: Big Bus Operator Files for Bankruptcy

Coach America, one of the country’s biggest bus operators, filed on Tuesday for bankruptcy protection to cut its debt load.

The company, which filed in Delaware bankruptcy court, attributed its decision for file for Chapter 11 protection on the burden imposed by its large debt load. As of Nov. 30, it had about $402 million in liabilities and $274 million in assets.

While Coach America maintained in court documents that its operations were relatively solid, it has posted consecutive yearly losses. For the 11 months that ended Nov. 30, it reported $417 million in revenue but lost $27 million.

With more than 3,000 vehicles in its fleet, the company claims to be the largest tour and charter bus service operator in the country.

“Coach America has, for too long, been constrained by our capital structure, and today’s decision will ensure a stronger company focused on delivering critical transportation services to our customers across the country,” George Maney, the company’s chief executive, said in a statement.

Its largest unsecured creditors include Universal Studios and SC Fuels.

To finance its operations in bankruptcy, Coach America lined up a $30 million loan from its existing senior lenders, led by JPMorgan Chase. The company plans no interruptions in service while it reorganizes its finances.

The Chapter 11 filing is a blow to Coach America’s majority owner, the private equity firm Fenway Partners. Fenway first invested in the company in 2007, spending $60 million, according to the investment firm’s Web site.

Coach America is being advised by Rothschild, the law firm Lowenstein Sandler and the consulting firm Alvarez Marsal.

Coach America Bankruptcy Petition

Coach America Bankruptcy Affidavit

Article source: http://feeds.nytimes.com/click.phdo?i=f3c8431a287a253c54540e25ad9a039d

DealBook: Borders to Begin Liquidating on Friday

A Borders bookstore announces it closing.Mandel Ngan/Agence France-Presse — Getty Images

The Borders Group prepared to enter its final chapter — liquidation — on Friday after a federal bankruptcy judge approved its plan to wind down its remaining stores.

The Borders store closings will be run by a group led by Hilco and the Gordon Brothers Group and that also includes the Great American Group, the SB Capital Group and the Tiger Capital Group.

The liquidators will offer discounts of up to 40 percent. Should customers be more interested in shelving and coffee machines instead of books and CDs, the store fixtures can also be bought.

“This marks the end of an era and we thank our customers for their patronage over our 40-year history,” Mike Edwards, president of Borders, said in a statement. “I encourage our customers to take advantage of this one-time opportunity to find exceptional discounts on their favorite books and other great merchandise.”

Borders is seeking court approval to sell 30 stores to a smaller rival, Books-A-Million. That must first be approved by bookstore chain’s official unsecured creditors committee.

The liquidation of Borders, which began 40 years ago as a used bookstore in Michigan, is expected to run through September.

Article source: http://feeds.nytimes.com/click.phdo?i=3882eb682d4c69b4ac79cd50225c4cec