Motor Coach Emerges From Bankruptcy Protection

JAMES MacPHERSON

BISMARCK, N.D. (AP) — Motor Coach Industries Inc., which makes commuter buses and luxury motor coaches, said it has emerged from Chapter 11 bankruptcy protection with a new majority owner.

The Schaumburg, Ill.-based company operates a bus plant in Pembina, in northeast North Dakota that employs about 220 people. MCI said in a statement Monday that it emerged from voluntary reorganization on Friday.

MCI filed for Chapter 11 bankruptcy protection in September. The company said at the time that the pre-negotiated bankruptcy filing would reduce the company's debt by $420 million by cutting interest by $54 million annually.

MCI said it has obtained a $230 million credit line, and its new majority owner, Franklin Mutual Advisers LLC, converted $200 million of debt into equity. Franklin Mutual Advisers is a subsidiary of San Mateo, Calif.-based Franklin Resources, Inc., a global investment management company.

MCI says it also got a $155 million loan from a group of lenders.

"The completion of our financial restructuring is a major milestone in the 76-year history of MCI," Tom Sorrells, MCI president and chief operating officer, said in the statement. "I am particularly pleased that, given a very challenging economic backdrop and the tight credit markets, we were able to complete the process in just seven months."