MCI files bankruptcy!!!

[John316]

We just received an email from the agency that is handling MCI filing bankruptcy. They said that MCI will probably be able to keep going, it just needs some financial "restructuring".

My guess is that we will end up paying even higher prices now .

God bless,

John 

[Charles Seaton]

MCI declares bankruptcy / Company says filing of Chapter 11 won't affect Loudonville facility
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September 26, 2008
By GINGER CHRIST

T-G Staff Writer

LOUDONVILLE -- Motor Coach Industries, a designer, manufacturer and marketer of coaches and supplier of coach-related parts and services based in Schaumburg, Ill., declared Chapter 11 bankruptcy Sept. 15.

According to an MCI press release, the filing is not expected to have an impact on the company's service centers, including one in Loudonville at 537 N. Market St. The local center serves as a collision and repair facility.

Loudonville general manager Ron Miller deferred comment to corporate spokesman Ron Tauberman.

"The Chapter 11 filing has absolutely no impact on any of the company's centers across the country, including that in Ohio," Tauberman said. "There's no change to job levels, job schedules, service, maintenance. Basically, it's business as usual with the facility."

MCI will implement a pre-negotiated Chapter 11 filing, which will be funded by Franklin Mutual Advisors Inc. and its affiliates -- a global investment management firm.

The filing will reduce the company's debt by about $20 million and is expected to reduce interest expenses by about $54 million annually.

"We made the strategic decision to significantly reduce our debt, strengthen our balance sheet and access new capital through a voluntary filing under chapter 11 so that we can build on our leadership position in the industry," MCI President and CEO Tom Sorrells said in the release. "We intend to work with our current vendors and to continue operations without interruptions to our customers."

MCI has been in business 75 years. The company operates seven sales centers and nine service centers in the United States and Canada.

MCI in Loudonville employs an estimated 72 people in two operations: a parts manufacturing division and a bus service maintenance and refurbishing division.

The company is in the plant that housed the Flxible Corp., long an economic mainstay in Loudonville until its closing in 1996.

T

[belfert]

I got a letter in the mail about the MCI bankruptcy a few weeks ago.  I guess anyone who ever ordered a part from them got one.  The letter came from some law firm or something on behalf of MCI.

[D0ggSh0]

Something did kinda sound amiss about the exclamational breaking news about the chapter 11 filing. I couldn't really understand how MCI -out of all the other bus manufacturers- would be on the losing end of the spectrum. I see more MCI coaches on the roads here than all other coaches combined. I sorta felt that if MCI was filing then the others couldn't be fare behind. Well, then comes along these confident and very encouraging "affidavit" posts. Thanks for sharing guys.

[John316]

Shodogg, are you thinking that we are glad that MCI filed chapter 11? If so, to set the record straight we (I think I can speak for the others too) are not. I was very disappointed to get the news about that. I agree that there seems to be a lot of MCI coaches on the road. My guess is that they tried to do to much with their coaches, upgraded models, hybrids, etc, to fast.

I was just posting a FYI, about the chapter 11. That is one thing that I have really liked about Mci, the ability to order just about any part that is on our coach, not to mention the tech support that is available.

God bless,

John

[compedgemarine]

I am no expert in bankruptcy but this may not be the worst news. at least if done correctly it will allow them to  negotiate on their debt and offer them some relief for the time being. many companies try to struggle through and by the time they realize they should have done something it is too late and the assets are being sold off. the biggest question is not the bankruptcy but is management smart enough to use this to make the company stronger in the end? I hope so. I dont have an MCI but I would hate to see them fail.
steve

[busshawg]

Maybe if production is down or done the prices of our MCI will come up, wishfull thinking huh?

[Eagle]

This will not be the last company that you will be seeing that files bankruptcy.  What this does is relieves MCI of it's debt to it's suppliers.  The suppliers and banks are the ones that gets screwed.

[makemineatwostroke]

Eagle; that is not allways true Chapter 11 can be used in different ways and most use to reorganize if they liquidate the system works as follows 

1   secured  creditors  (banks) 
2 unsecured creditors             (suppliers) 
3 stockholders they are the ones that get screwed 
MCI is going to emerge from this in Feb It's owned by a wall street co   have a great day

[John316]

MMA2S,

Does that mean that MCI is currently owned by a Wall street company or they will be owned by a Wall Street company?

God bless,

John

[buswarrior]

I think I read somewhere that MCI has had some very many numerous owners over it's "life".

Many of those were holding company types that are only speculating that they bought it low, and will sell it high. Quality of product and building on historical success are less important than a quick share build up and a sale.

It is suggested that some of the flaws in the current line up and the near past multitude of product offerings were triggered by installed management with less than adequate practical understanding of the bus building business.

As noted above, no fear needed, this is just the financial/legal types doing the end run, calculating how to maximize the future sales potential of the company to another hapless owner, and protect the current capital investment.

happy coaching!
buswarrior

[D0ggSh0]

Shodogg, are you thinking that we are glad that MCI filed chapter 11?...

God bless,
John

John I don't think any of the fine folks on this board is or was too happy about the first incidence of the chapter 11 filing. I was just trying emphasize how it all initially seemed "gloom and doom", but then at the end letters where shared explaining it straight from the horse's' mouth so to speak.
Actually I believe a true bus-nut is dismayed at any bad news concerning our pasion. Sorry for the misunderstanding. 

[John316]

Shodogg,

Not a problem!!! I, to say the least, was very disappointed to hear that they had to file Chap 11. They have been a great company (maybe a little overpriced but...). We have gotten to know their tech support team pretty well (I wonder how ), and would sure hate to see them have any issues!!! I was glad to read there won't be anybody that will lose their jobs.

Here is their latest. http://www.mcicoach.com/enTouchCMS/app/viewDocument?docID=649

[garhawk]

The filing will reduce the company's debt by about $20 million and is expected to reduce interest expenses by about $54 million annually

now please tell me again, nobody loses and dial 1 for english.

[Dreamscape]

I hate to see any bus company have problems, but with the economy having problems, everybody does. I hope that they will come out of it OK and be careful in the future.

I have no knowledge about MCI other than what I read, it's a good bus and it's the choice of lots of busnuts.

I just happen to own an Eagle!

Happy Trails,

Paul