Motorcoach

Coach America granted approval on first day motions

Posted on January 5, 2012

Coach America Holdings Inc. was granted approval on a series of first day motions filed to help support its customers, employees, suppliers and business partners; to obtain interim financing authority; to maintain existing cash management systems; and to pay vendors and suppliers in the ordinary course of business, according to a company statement.

Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware granted the approval.

Coach America’s financial and operational stability going forward was enhanced through the granting of the following motions: payment of pre-petition and post-petition employee wages, salaries, business expenses and benefits, including medical, dental and life insurance benefits for current employees; interim approval for debtor-in-possession (DIP) financing of $30 million for use by the company to continue operations and purchase and pay for goods and services; and financing authority to pay certain pre-petition commitments that are necessary in the course of conducting business.

The DIP financing package was provided by a steering committee of Coach America’s existing senior lenders. The court has scheduled a final hearing on DIP financing on Friday, January 27.

“The approval of Coach America’s first-day motions by the court is an important initial step in the restructuring process and allows us to move forward with our normal operations, including paying vendors and suppliers in the ordinary course of business,” said George Maney, CEO of Coach America. “We remain focused on serving our customers and believe that the prompt approval of these ‘first day orders’ is good news for the company, as well as for our customers, employees, suppliers and business partners.”

As previously announced, Coach America Holdings Inc. and its U.S.-based subsidiaries filed to reorganize under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. More information about the Chapter 11 filing, which has been assigned case number 12-10010 (KG), is available on the Internet at www.coachamerica.com/restructure. The company is providing ongoing access to court documents, including today's orders, at www.bmcgroup.com/coachamerica.

View comments or post a comment on this story. (0 Comments)

More News

Ohio's Cardinal Transportation adds 2 Van Hool TX45s

Both new 56 passenger Van Hool TX45s are equipped with Detroit Diesel DD13, 450 HP engines and Allison B500 (Gen5) six-speed automatic transmissions, and feature Amaya A2TEN leather seats with fabric inserts and three-point seat belts.

ABA, UMA first joint Congressional 'Fly-in' a success

Overall, 116 members from both organizations met with more than 150 congressional offices.

Europe's FlixBus inaugurates 1st 100% electric long-distance bus line

Company is also planning to expand to the U.S. as FlixBus USA.

Trailways honors 'Outstanding Motorcoach Drivers of the Year'

The awardees were from Alabama, Maryland and New York.

Bus crash kills 15 Canadian junior hockey players

Police said it was too early to discuss the cause of the crash, and that an investigation was underway.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close