Coach USA, the owner of Megabus and Lenzner lines, filed late Tuesday for Chapter 11 bankruptcy protection as the bus company struggled in the wake of drastic changes to Americans’ transportation habits during and after the Covid-19 pandemic.
The filing in U.S. Bankruptcy Court in Delaware also includes several dozen other coach and tour companies owned by Coach USA including several in the Pittsburgh region including Lenzner Tours Inc., Pennsylvania Motor Transit, Lenzner Tours Ltd., Lenzner Transit Inc., Lenzner Transportation Group Inc., all of Sewickley, and Butler Motor Transit Inc. in Butler. Coach USA is headquartered in Paramus, New Jersey, just outside of New York City, but owns a number of bus companies around the country.
Coach USA estimated liabilities of up to $500 million and between 1,000 and 5,000 creditors, according to its bankruptcy filing. Coach USA has received $20 million in debtor-in-possession financing to continue operations and plans to sell assets to two companies, The Renco Group Inc. and Avalon Transportation LLC. If the stalking horse bids approved, Avalon would acquire the Lenzner companies, which are based in the Pittsburgh region.
Read more at Pittsburgh Business Times.
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