Coach USA, parent company of Megabus, files for Chapter 11 bankruptcy protection
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.
Megan Swift is a TribLive reporter covering trending news in Western Pennsylvania. A Murrysville native, she joined the Trib full time in 2023 after serving as editor-in-chief of The Daily Collegian at Penn State. She previously worked as a Jim Borden Scholarship intern at the Trib for three summers. She can be reached at mswift@triblive.com.
Remove the ads from your TribLIVE reading experience but still support the journalists who create the content with TribLIVE Ad-Free.