Coach USA, the parent company of Megabus, has voluntarily filed for Chapter 11 bankruptcy protection.
The reason for the filing was to preserve jobs, ensure continued service and maximize the value of its businesses, Coach USA said in a news release.
“U.S. Megabus operations will continue while the company pursues an ongoing transition to the existing partnership business model,” the statement said.
However, Megabus Northeast, LLC, filed a WARN notice this June with the Pennsylvania Department of Labor and Industry regarding the closure of its Sewickley facility at 110 Lenzner Court.
According to the filing, the facility will close Aug. 9, and it will affect 12 people.
Coach USA filed motions seeking authorization to support its operations during the court-supervised process — including authority to pay wages and provide health and other employee benefits, according to the release.
“Our top priority remains safely carrying the millions of passengers who choose our buses each year and working closely with our valued contract customers and transportation agency partners,” said Derrick Waters, CEO of Coach USA.
The company received a commitment for debtor-in-possession financing, which will include $20 million in new money.
“Following court approval, this DIP financing, combined with cash generated from the company’s ongoing operations, is expected to support the business during the court-supervised process,” the release said.
