In a statement, Coach USA CEO Derrick Waters said the court approval “will preserve thousands of jobs and ensure continued service to millions of passengers throughout North America.” The company has 2,700 employees throughout the U.S. and Canada.
The Avalon and Wynne Transportation transactions are expected to close Aug. 19, and the Renco Group transaction in the coming months.
Coach USA reiterated that it is continuing to operate its lines and serve customers as normal through the transitions.
Alston & Bird LLP is serving as the company’s legal counsel; Houlihan Lokey Inc. is serving as financial advisor; CR3 Partners LLC is serving as restructuring advisor; and Spencer Ware is serving as chief restructuring officer.
Terminal auctions
A&G Real Estate Partners, serving as Coach USA’s real estate advisor, also announced this week that eight of the company’s bus terminals will be auctioned off as part of the Chapter 11 process.
The bid deadline is Aug. 28, subject to court approval of procedures.
“These eight bus terminals offer ample space for parking, storage and repair/maintenance, and they also boast strategic locations near airports, highways and major U.S. markets,” said Emilio Amendola, A&G co-president and head of the firm’s real estate sales division. “Bus and trucking companies already are expressing strong interest in these sites.”
Two of the terminals up for auction are in the Garden State, in Paulsboro and Elizabeth. The others are in California, Maryland, Ohio, Pennsylvania and two in Texas.
“These assets offer attractive rents, and the Elizabeth location is adjacent to the Port of Newark, with a very significant remaining term adding to the appeal,” Ware said. “It’s a tremendous opportunity for the U.S. transportation sector.”
Stepping on the brakes
In June, Coach USA cited “significant challenges” caused by the COVID-19 pandemic as the reasoning behind its bankruptcy filing. “[R]idership and demand in our industry have remained well below pre-pandemic levels,” the company added.
In July, the company said service would continue as normal but also notified NJ Transit it would cancel its contract with the agency by Aug. 16.
This move led several Bergen County officials to call on NJ Transit to take action to ensure commuters weren’t left without service. NJ Transit then announced an emergency bus service plan for affected customers in three North Jersey counties.
“While presenting significant challenges to NJ Transit resources, we are once again stepping up after yet another private carrier abandons service with little notice,” NJ Transit President and CEO Kevin Corbett said, referring to the agency’s route takeover from private carriers DeCamp, A&C and O.N.E. “We are ensuring that the thousands of customers who depend on these routes for their mobility retain these vital bus services.”
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Publish date : 2024-08-15 10:23:00
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