• Coach Am Group Holdings Corp. Files for Chapter 11 Protection
  • January 9, 2012
  • Law Firm: Morris James LLP - Wilmington Office
  • On January 3, 2012, Coach Am Group Holdings Corp. and various affiliates (collectively, the “Debtors”) filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware.  The petition lists assets between $0 to $50,000 and liabilities between $1 million to $10 million.  Chief Judge Kevin Gross has been assigned the cases, in which motions to have the cases jointly administered under the Coach Am Group Holdings Corp. case number (12-10010) are pending.

    According to the first-day Declaration of Brian E. Cejka, the Chief Restructuring Officer for the Debtors, the Debtors operate the largest tour and charter bus service and the second largest motorcoach service in the United States, with 6,000 employees, a fleet of over 3,000 vehicles, and services ranging from motorcoach charters to rail crew transportation and contract services for municipalities and corporations.  Debt service requirements, covenant restrictions, and increased insurance costs (primarily relating to insurance renewals) have placed acute pressure on the Debtors’ liquidity, which constraints have caused the Debtors to defer capital improvements, according to Mr. Cejka.  The Debtors declared a need for financial restructuring due to impending issues with their First Lien Credit Facility, which restructuring they attempted to negotiate with the First Lien Agent in the months prior to filing, but which negotiations were ultimately unsuccessful.

    Chief Judge Kevin Gross has been assigned to the cases, in which motions to have the cases jointly administered under the Coach Am Group Holdings Corp. case number (12-10010) are pending.