The Atlantic Express Transportation Corp. is a busing company that is located in Staten Island. The company recently filed for Chapter 11 bankruptcy and informed their employees that the company would be ceasing operations coming at the end of the year. Atlantic Express is responsible for transporting thousands of students throughout several school districts. The company is based in New York but it also provides services to California, Massachusetts and Pennsylvania.
With the company’s severe financial troubles they are expecting to be out of business unless they are able to turn things around. Their main two goals are to receive new financing that will allow them to pay off debt and restructure their finances, and to negotiate a new contract with the Amalgamated Transit Union, AFL-CIO in New York City. If the company is able to meet their goals then they may be able to remain in business and keep their employees with a job. This is not the first time that the company has filed for bankruptcy but they were able to successfully reemerge from their previous filings back in 1991 and 2002.
Chapter 11 bankruptcy is a form of bankruptcy that allows for reorganization. This option is available to all businesses when they are no longer able to meet their debts. If creditors meet criteria, they can also seek for bankruptcy to be filed (11 U.S.C. §§ 301, 303). In Chapter 11 cases, if a separate trustee is not appointed, the debtor in possession will act as the trustee. For information on Chapter 11 bankruptcy, you can visit the website for the United States Court or get in touch with our Long Island bankruptcy lawyer.
