Bus Carrier Coach USA Cuts Deal With Creditors on Sale, New Debt

Bankrupt bus company Coach USA won court approval to sell its Megabus commuter service, including routes connecting New York and New Jersey, after lower-ranking creditors dropped their opposition.

US Bankruptcy Judge Mary Walrath said she would sign orders allowing Coach’s main businesses to be sold in an auction next month in which Renco Group will be the lead bidder. The New York investment company will assume $130 million of Coach’s debt as part of its binding, initial offer.

The auction had been threatened by objections from an official committee of unsecured creditors to the Renco bid and a related financing ...