SCHAUMBURG, Ill. Motor Coach Industries announced that on April 17 the company emerged from its voluntary Chapter 11 reorganization.

The U.S. Bankruptcy Court for the district of Delaware confirmed the Second Amended Joint Plan of Reorganization for MCI and certain of its affiliated companies on Jan. 28.

"The completion of our financial restructuring is a major milestone in the 76-year history of MCI," said Tom Sorrells, president and CEO.

"I am particularly pleased that, given a very challenging economic backdrop and the tight credit markets, we were able to complete the process in just seven months.

"This is a testament to the strong reputation and presence of our company in the industry and the unyielding commitment of Franklin Mutual Advisers LLC, our new majority shareholder, through the final negotiations.

"This achievement also reflects the dedication of all MCI employees who continued their focus on delivering quality coaches and customer service during this period.

"We are also extremely appreciative of the outstanding support we received from our lenders and legal and financial advisors in this process," said Sorrells.

"Finally, I want to especially recognize MCIs customers and suppliers, whose loyalty and support throughout were critical components of this successful result. We look forward to building on our reputation for innovation and continuing as the leader in the motor coach industry."

Certain investment funds managed by Franklin Mutual Advisers, a recognized and established global investment management firm, have become the companys majority shareholders through the conversion of third lien secured debt into common stock and the issuance of $200 million in new preferred stock.

In conjunction with its emergence from Chapter 11, MCI has obtained $230 million of exit financing and consummated its pre-negotiated plan.

GE Capital is the arranger and lead lender under a $75 million senior secured revolving credit facility. The company has also arranged for a $155 million second lien term loan from a group of lenders.

"The decision to further invest in MCI and its future is based on a recognition and respect of its leading position in the strategic transportation sector and its commitment to building customer relationships, providing consistent quality and innovation, and working with integrity, all values we share," said Shawn Tumulty, vice president and portfolio manager for FMA.

"We are familiar with MCI and its operations as an investor over the last five years and look forward to the opportunity to work with MCIs executive leadership in developing a renewed strategy for growth and success."

Added Sorrells: "We have secured a strong new financing package, the terms of which were improved as a result of FMA agreeing to enhance the companys post-emergence capital structure.

"With a strengthened financial base, we are well positioned to take greater advantage of market opportunities and further grow our business."

Commenting on the MCI announcement, Godfrey LeBron, chairman of the United Motorcoach Association and vice president of Paradise Trailways in Hicksville, N.Y., said: "MCI is an industry stalwart and UMA applauds their accomplishment.

"Todays financial marketplace is a tough environment and their strong financing, coupled with their position in the industry, would indicate a very bright future indeed."