Simpson Thacher has represented leading U.S. bus manufacturer Motor Coach Industries in its successful emergence from bankruptcy. Motor Coach announced its official exit from Chapter 11 on April 17, 2009. Schaumberg, Illinois-based Motor Coach completed a financial restructuring and has emerged from bankruptcy in only seven months following its chapter 11 filing in September 2008.
The centerpiece of Motor Coach's Plan of Reorganization was a $200 million investment by funds managed by Franklin Mutual Advisers, LLC, which also converted their existing third lien secured debt into common stock and are now the Company’s majority shareholders. The company also obtained $230 million in exit financing from certain of its existing lenders, including $75 million in senior secured credit from GE Capital, and an additional $155 million second lien term loan provided by affiliates of or funds managed by holders of its existing term debt.
Motor Coach's Plan of Reorganization was approved earlier this year by Judge Brendan Shannon of the U.S. Bankruptcy Court for the District of Delaware, following months of litigation challenging the pre-negotiated plan by the company’s unsecured creditors.
Motor Coach, established in 1933, is a leading manufacturer of charter, tour and commuter buses in the U.S. and Canada.
The Simpson Thacher team advising Motor Coach included Ken Ziman, Kathy McLendon, Elisha Graff, Lauren Gee and Terry Sanders (Bankruptcy); Soogy Lee, Nick Feinberg, Jill Kalish, Jeremy Friedman and Sandra Kister (Financing); Mary Beth Forshaw, Bryce Friedman, Chris Lucht, Ian Dattner, Josh Kiman, Raina Nortick and Batsheva Eadan (Litigation); Gary Horowitz, Mark Brod, Folake Ayoola and Aby Castro (Corporate); Steve Todrys, Jonathan Goldstein and Aaron Cohen (Tax); and Jamin Koslowe and Eric Sarabia (Executive Compensation & Employee Benefits). In addition, paralegals Sean Weekes, Lis Juterbock and Andrew Laird provided key support for the firm's efforts.