Springfield, Mass.-based intercity bus operator Peter Pan Bus Lines announced this week that it will take over all Megabus routes in the Northeast Corridor.
Former Megabus parent company Coach USA filed for bankruptcy in June, noting that ridership “remained well below pre-pandemic levels,” and Delaware courts began overseeing the sale of its assets. According to the Baltimore Sun and court documents from the United States Bankruptcy Court for the District of Delaware, Coach USA owes Wells Fargo nearly $38 million in loan payments and almost $7 million in unpaid rent in California and New Jersey.
Paramus, N.J.-based Coach USA is one of several charter bus operators providing shuttle service during the Metro Red Line closures. According to court filings, the company currently has over $12 million in outstanding debt from settled litigation and between $100 million and $500 million in assets and liabilities.
New York City-based holding company The Renco Group, owned by billionaire Ira Rennert, moved to acquire Megabus, which received court approval this week and is expected to close in the coming months. Along with the Megabus assets, Renco Group affiliate Bus Company Holdings US will acquire several other bus lines: Dillon’s, Elko, Montreal, Olympia, Trentway/Ontario (including Megabus Canada), Perfect Body, Rockland, Shortline (including Chenango Valley Bus Lines), Suburban, Van Galder and Wisconsin Coach, as well as certain assets of Community Coach.
The Renco Group invests in other companies across various industries and owns various mills and mines in the U.S. and South America. According to Wikipedia, pollution problems at some of the company’s properties have sparked public backlash, environmental lawsuits, and hundreds of millions of dollars in penalties and fines.
According to a press release issued Wednesday, several other Coach USA assets are being sold to AVALON Transportation and Wynne Transportation affiliates, and those transactions are expected to close next week.
Peter Pan Bus Lines operates bus routes throughout the Northeast Corridor with stops at the Silver Spring Transit Center, and partners with Trailways, Amtrak, Uber, and Lyft. Megabus is still selling tickets online for the Northeast routes, noting that Peter Pan will operate the trip.
“We’re modernizing our fleet, which is what our consumers want; they want a nice, clean, modern bus,” CEO Peter Picknelly said in a press release, noting that Peter Pan has reduced fares by close to 40 percent, hired 75 new drivers, and purchased 45 new buses. “We listen to our customers—where they want to go—and expand where it makes sense.”
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