Megabus Canada and affiliated entities within the Coach megabus group, collectively “Coach Canada,” had their US Chapter 11 proceedings recognized under Part IV of the CCAA on June 14, 2024. Coach Canada, with nearly a century of history, operates in 25 business segments across North America, employing over 2,700 employees with a fleet of over 2,000 buses. Coach Canada accounts for 9.7% of the group’s revenue and 13.2% of its workforce. The Covid-19 pandemic severely impacted the group, leading to complete operational shutdowns and a slower-than-expected recovery, further strained by a shift towards hybrid work environments.

To address liquidity issues, Coach Canada engaged its prepetition lenders, Wells Fargo and MUFG National Bank, who are owed approximately $179.9 million. Forbearance agreements were established, and a sale process commenced, resulting in three proposed sale transactions supported by stalking horse agreements for different segments. The proposed agreement with the Renco Group includes the business and assets of Coach Canada. Coach group plans to seek a bidding procedures order from the US Bankruptcy Court, with the stalking horse APAs as the auction baseline. Recognition will also be sought from the Canadian Court.

Legal advisors for this process include Bennett Jones for the companies, Norton Rose for the prepetition/DIP lenders, Osler for the information officer, and Stikeman Elliott for the Renco Group. A&M served as the information officer.