Schaumburg bus maker emerges from bankruptcy

Bus maker Motor Coach Industries Inc. announced that it recently emerged from its voluntary Chapter 11 bankruptcy reorganization.

About six months ago, the Schaumburg-based company filed for Chapter 11 bankruptcy protection as part of a restructuring that would help shed hundreds of millions of dollars of debt.

"The completion of our financial restructuring is a major milestone in the 76-year history of MCI," President and CEO Tom Sorrells said in a release Monday. I am particularly pleased that, given a very challenging economic backdrop and the tight credit markets, we were able to complete the process in just seven months. This is a testament to the strong reputation and presence of our Company in the industry and the unyielding commitment of Franklin Mutual Advisers, our new majority shareholder, through the final negotiations."

The company, which began in Winnipeg in the 1930s, said in October that the restructuring would have "no impact to coach production or service."

Certain investment funds managed by Franklin Mutual Advisers, a recognized and established global investment management firm, have become the Company's majority shareholders through the conversion of third lien secured debt into common stock and the issuance of $200 million in new preferred stock. In conjunction with its emergence from Chapter 11, MCI has obtained $230 million of exit financing and consummated its pre-negotiated plan. GE Capital is the arranger and lead lender under a $75 million senior secured revolving credit facility. The company has also arranged for a $155 million second lien term loan from a group of lenders.