VecTour, the largest privately owned ground transportation company in the U.S., filed for chapter 11 bankruptcy protection and cited a 50% decline in travel since the September 11 attacks as the reason.
The company expects to enter into a $5 million debtor-in-possession (DIP) financing agreement, which is subject to court approval, to provide adequate working capital during the period of its reorganization. In papers filed at Bankruptcy Court on Tuesday, VecTour listed debts of more than $100 million and assets of $1 million to $10 million.
VecTour’s primary lines of business, including airport transportation and sightseeing tours, experienced immediate 25% to 50% drops in revenue after September 11.
“VecTour’s mission since the tragic events of September 11 has been simple — to protect our businesses until the country and the economy have had time to recover,” said VecTour President and COO Joe Scott in a statement.