Coach America debtors' Chapter 11 bankruptcy cases dismissed by court

By Caroline Salls

Pittsburgh, May 31 - Coach America Holdings Inc.'s Chapter 11 cases, other than the lead case, were dismissed Friday by the U.S. Bankruptcy Court for the District of Delaware.

The Chapter 11 case of Coach Am Group Holdings Corp. will remain open until the later of resolution of Bridgestone Americas Tire Operations, LLC alleged post-bankruptcy claims and the earlier of 90 days from Friday's order or resolution of all objections to claims filed on behalf of the general unsecured creditor trustee and entry of orders on the final fee applications of all professionals retained in the Chapter 11 cases.

Sales of the company's assets failed to yield sufficient proceeds to fully repay the pre-bankruptcy secured lenders, and the debtors do not have sufficient funds to confirm a Chapter 11 plan, the company said in seeking the dismissal.

In place of a plan, the debtors plan to "wind down their remaining assets in an orderly manner."

The dismissal includes the creation and funding of a trust for general unsecured creditors and a lender's trust.

The lender's trust would receive any remaining assets of the debtors, negotiate settlement of claims and make disbursements.

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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