Coach USA, the operator of Megabus and other commuter bus lines in the US and Canada, filed for bankruptcy protection in Delaware late Tuesday, seeking to sell its assets and shed debt incurred in an ill-timed 2019 private equity buyout.
Coach, the largest privately owned bus company in the US, was acquired by private equity firm Variant Equity Advisors for $270 million, mostly using debt that is still on the company’s books.
Coach CEO Derrick Waters said that buses will continue to run as normal during the company’s bankruptcy.
The company operates several other bus brands in addition to Coach, including Megabus, Dillon’s Bus Company, and Go Van Galder.
Renco Group, a private investment company, would acquire the majority of Coach’s assets in exchange for taking on $130 million of company debt and certain union contracts.
Persons:
Derrick Waters, ” Waters, Van Galder
Organizations:
USA, Equity, Coronavirus, Economic Security, Dillon’s Bus Company, Renco, Avalon Transportation, ABC Buses
Locations:
Canada, Delaware, Wilmington , Delaware, Atlanta , Georgia