By Dow Jones Business News,
December 18, 2013, 12:09:00 PM EDT
By Stephanie Gleason
NEW YORK--Atlantic Express Transportation Corp. made its second of three bankruptcy-court appearances this week,
receiving approval of three more sales.
All the sales are to Logan Bus Co. and still require the approval of the issuers of the contracts Atlantic Express is
assigning through the sale. However, Judge Sean Lane gave his approval, removing any bankruptcy-court barrier to the
The sales are for $380,000, $300,000 and $70,000 each. Respectively, they involve busing contracts with Uniondale,
East Meadow and Oceanside school districts, Metro North Commuter Rail and Bellmore Merrick school districts, all of
which are located in New York.
Atlantic Express will return to bankruptcy court on Thursday asking approval of remaining sales. In all, the sales
raised more than $19.5 million in cash and credit bids. There are 10 deals and two contingent offers. Five of the deals
and one contingent offer have now received bankruptcy-court approval.
A number of issues surrounding the other offers are still being worked out, and another hearing could even be
scheduled Friday to deal with the sales.
Atlantic Express entered Chapter 11 bankruptcy in November, strapped with a liquidity crisis caused by high labor
costs and the loss of some revenue as a result of a change to bidding contracts in New York City this year. Overall,
company revenue has fallen 10% in the last year, it said.
Atlantic Express, which operates in five states and is the largest school-bus contractor for both New York City and
Philadelphia, said its business in New York has become so unprofitable that other areas of the business can't compensate
The company has $173.4 million in assets and $251.2 million in debt, which includes $43.49 million in senior debt owed
to Wells Fargo and $155 million in second-lien notes outstanding, according to court documents.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to
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