Motor Coach Industries' plan effective date deadline extended to March 31

By Caroline Salls

Pittsburgh, March 13 - Motor Coach Industries International, Inc.'s plan of reorganization effective date deadline has been extended to March 31 from Feb. 28, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Motor Coach asked the court to declare its plan confirmation ruling a final order in late February to allow the company to emerge from bankruptcy by the previous Feb. 28 deadline.

However, third-lien debtholder and rights offering backstop party Franklin Mutual Advisers, LLC objected to the motion, arguing that the company's "strained and selective method of contract interpretation seeks to advantage the debtors with every bargained-for exchange under the plan, while simultaneously stripping FMA of the benefit of its bargain."

Since its official committee of unsecured creditors appealed the confirmation ruling and was awaiting the outcome of an appeal of its motion to stay the ruling, Motor Coach said the confirmation order is not final under the plan terms.

The company said the committee's appeal will be rendered moot when the plan takes effect, but it most likely would have still been pending on the previous plan effective date deadline.

Motor Coach Industries, a Schaumburg, Ill.-based designer, manufacturer and marketer of inter-city coaches and related replacement parts for the North American market, filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-12136.

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