Greyhound now out of bankruptcy

October 11, 1991

A U.S. bankruptcy judge in Dallas yesterday signed an order confirming the reorganization of Greyhound Lines Inc., formally ending the Chapter 11 saga that began after the bus company's drivers went on strike last year.

"We are moving forward with our business plans, with a mission to improve customer service and provide shareholders and noteholders with a maximum return on their investments," said Frank Schmieder, Greyhound president and chief executive.

Greyhound, the nation's only intercity bus line, restructured more than $600 million in debt, trimming about $200 million in the process that began in June 1990.

The company will become publicly traded again with common stock listed on the American Stock Exchange. Unsecured creditors will receive 95 percent of the stock.

U.S. Bankruptcy Judge Richard Schmidt in Corpus Christi, Texas, gave preliminary confirmation of the reorganization Aug. 30 over objections from the union representing striking drivers and the National Labor Relations Board.

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