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MCI Emerges From Bankruptcy

LCT Staff
Posted on April 22, 2009

NEW YORK — Motor Coach Industries International Inc [MCIIN.UL] has emerged from Chapter 11 bankruptcy and some Franklin Mutual Advisers LLC funds have taken a majority shareholder stake, the tour bus maker said on Monday.

A bankruptcy court approved the company's reorganization plan on Jan. 28 and it emerged from its voluntary Chapter 11 reorganization plan on Friday, Motor Coach said Monday in a statement.

The maker of intercity coaches for U.S. and Canadian tour, charter and commuter transit operations said investment funds managed by Franklin Mutual Advisers have become the company's majority shareholders through the conversion of third lien- secured debt into common stock and the issuance of $200 million in new preferred stock.

Franklin Mutual Advisers is a subsidiary of global investment management group Franklin Resources Inc.

Also, Motor Coach obtained $230 million of exit financing. GE Capital is the arranger and lead lender under a $75 million senior secured revolving credit facility. The company also arranged for a $155 million second lien term loan from a group of lenders who were not specified.

The case is In re Motor Coach Industries International Inc. US Bankruptcy Court, District of Delaware, No. 08-12136. (Reporting by Chelsea Emery, editing by Maureen Bavdek)

Source: Reuters

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