While the numbers are hard to pin down, the reality is drivers don't make much when factoring out overhead costs.
DALLAS — Coach America Holdings Inc., headquartered in Dallas, announced the company and its subsidiaries have filed a voluntary petition for Chapter 11 reorganization in the U.S. Bankruptcy Court for the District of Delaware after being unable to restructure more than $400 million of debt. Private equity firm Fenway Partners is the main sponsor for Coach America, which said it has lost $207 million since the end of 2009.
Coach America said it has obtained $30 million of debtor-in-possession financing from lenders led by JPMorgan Chase & Co to keep operating while in bankruptcy. This financing is subject to approval by the Bankruptcy Court and will support the company's fleet investment and help ensure the following:
Coach America provides motorcoach charters, tours and sightseeing, commuter transportation, airport and casino shuttles, rail crew transportation, and contract services for municipalities and corporations all throughout the U.S. It operates more than 3,000 vehicles, including more than 1,600 motorcoaches, primarily under the Coach America, American Coach Lines and Gray Line brands.
The company is discussing a restructuring with its lenders to position it for future growth and competitive success.
“Coach America has, for too long, been constrained by our capital structure, and today's decision will ensure a stronger company focused on delivering critical transportation services to our customers across the country,” said George Maney, president/CEO of Coach America. “I want to emphasize that it is business as usual for Coach America throughout the Chapter 11 process, and we look forward to a right-sized capital structure that will enhance our competitiveness and ability to serve our customers going forward.”
Coach America's investment banker is Rothschild Inc., legal counsel is Lowenstein Sandler PC, and its financial advisor is Alvarez & Marsal North America LLC.
More information about Coach America's Chapter 11 filing, including resources for customers and suppliers, is available on the Internet at www.coachamerica.com/restructure.
Update, 1/5/2012: Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware granted Coach America 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. Read the full report here.
Operators Dino Javas and Matt McHugh are examples of industry upstarts who see potential in luxury vehicle service.
eNews Exclusive: Operator Jodi Merritt has come to realize the value of offering a diverse fleet.
GO Puerto Rico Shuttle provided steady transportation for four months in devastating conditions.
Doug Schifter was waging a campaign to stop Uber from taking the livelihoods of black car drivers until he killed himself.
The West Coast region has the highest gallon prices in the nation, with California at $3.69. Connecticut and Pennsylvania round out the top 10 at $3.04.
The PSA done with the National Limousine Association is the fourth one from the actress-activist spotlighting ridehail faults.
Michael Campbell gives new meaning to recruitment efforts in his home state of New Hampshire.
The Houston school district doesn't have enough drivers to keep its fleet of yellow buses on the road.
SOFTWARE SNAFU? Sources say the system was set up to overlook objects it should have noticed.
eNews Exclusive: Being forced out of the chauffeur seat helped Brian Beaulieu expand his fleet from one to 40 vehicles.
VIDEO: These four steps that should be part of any driver training could spare your luxury vehicles from accidents.
AAA demonstrates how to adjust your side and rear view mirrors so they fully reveal your blind spots. Full safety tips here
MAY LCT: Two key operational challenges for motorcoach operators are preparing for roadside inspections and maintaining electronic logs.
MAY LCT: Manufacturers are advancing in the luxury transportation market as more riders prefer big buses.
The world's No. 1 online marketplace and trader for professional chauffeured and chartered vehicles, including all types of motorcoaches, buses, vans, stretch limousines, sedans, SUVs, exotics, and classics. New and used vehicles are available from sellers across the nation.
The best online networker to find quality affiliates worldwide and market your company.
Click on any state to see the latest industry news and events in that region.