Atlantic Express Transportation Corp sought Chapter 11 bankruptcy protection, according to a court filing. The company is an operator of school buses based in New York. Atlantic Express Transportation listed USD 100 million to USD 500 million in liabilities and assets. The 39 affliates of the company also filed for debt relief.
The filing also showed that two funds of Wayzata Investment Partners held a 63% stake in the transportation company. Wayzata Investment Partners is a private equity company that focuses on buying distressed firms and assets.
Established in 1964, the transportation company is the fourth biggest school bus corporation in the US. It transports children in more than 100 school districts nationwide.
In a press release, Atlantic Express Transportation Corp President and CEO David Carpenter said, "On behalf of the entire management team at Atlantic Express, I would like to thank our customers, employees and suppliers for their support during this challenging financial reorganization process. Quite simply, our current business model in our largest market, New York City, is not sustainable as union labor costs and operating expenses have severely hindered our ability to remain competitive and meet our financial obligations." He said that the company's board determined that bankruptcy was the best course of action after a lengthy review process.
Join the Conversation