Coach USA, the company behind Megabus and several commuter bus lines in the US and Canada, has filed for bankruptcy protection in Delaware on Tuesday. This move aims to facilitate asset sales and reduce debt.

Coach USA Enters Chapter 11 Bankruptcy

Coach USA CEO Derrick Waters assured that bus services will continue without disruption during the bankruptcy process. He emphasized the company's commitment to passenger safety and its relationships with contract customers and transportation agencies.

According to Reuters, Coach USA entered Chapter 11 with $197.8 million in debt. That includes $37 million from a pandemic relief loan under the CARES Act and at least $134 million in trade debts and other unpaid obligations.

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Who Will Acquire Coach USA

Renco Group, a private investment firm, is set to acquire most of Coach's assets by taking on $130 million of the company's debt and some union contracts.

Avalon Transportation plans to buy bus routes in Atlanta and the Western states and specialized tour bus services for $14.8 million. On the other hand, ABC Buses will acquire a fleet of 143 double-decker buses for $2.3 million.

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