Coach America Holdings moves auction to April 25
Coach America Holdings has re-scheduled the sale auction date related to its Chapter 11 proceedings to April 25. The auction had originally been scheduled for April 18. The one-week delay comes after a submission from the pre-petition first lien agent, pursuant to Section 9.1 of the Prepetition First Lien Credit Agreement, of its intent to submit a Credit Bid under Section 363 of the U.S. Bankruptcy Code.
Coach America Holdings Inc. filed for Chapter 11 bankruptcy in early January in the U.S. Bankruptcy Court for the District of Delaware. As of late November the company, with its more than 3,000-vehicle fleet, had $402 million in debts and some $274 million in assets.
In late November 2006, Fenway Partners, a middle market private equity firm, entered into an agreement to acquire Coach America, then the largest tour and charter bus operator and the second largest motorcoach services provider in the U.S., from Kohlberg & Company. The New York firm acquired Coach America for $60 million. The company was generating $393 million in revenues at that time. Fenway became the company’s largest shareholder when it invested in Coach America back in 2006.
Red flags around the company’s financial situation appeared in February 2011 when Coach America’s lenders, along with Fenway Partners, amended and restated the company’s senior secured credit facility new investment and debt-to-equity conversion together totaled close to $50 million.