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Coach America requests dismissal of Chapter 11 cases, approval of trust
By Jim Witters
Wilmington, Del., April 18 - Coach America Holdings Inc. is seeking approval of the creation of a general unsecured creditors trust and dismissal of its Chapter 11 cases, according to an April 17 filing with the U.S. Bankruptcy Court for the District of Delaware.
The trust was a provision of the company's debtor-in-possession financing order.
Sales of the company's assets failed to yield sufficient proceeds to fully repay the pre-petition secured lenders, and the debtors do not have sufficient funds to confirm a Chapter 11 plan, the filing states.
"Instead, the debtors would propose to wind down their remaining assets in an orderly manner. To facilitate the wind-down, the prepetition first-lien lenders have agreed to fully fund the wind-down expenses, including the full payment of U.S. Trustee fees, professional fees and expenses, ordinary course trade payables, and other wind-down expenses," according to the court documents.
A hearing to consider the motion is scheduled for 2:45 p.m. ET on May 8.
Coach America, a Dallas-based tour and charter bus operator and motorcoach services provider, filed for bankruptcy on Jan. 3, 2012. The Chapter 11 case number is 12-10010.
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