PEORIA, Ill. — Calling it one of the toughest decisions of his career, Peoria Charter Coach Co. CEO and owner James Wang said he chose bankruptcy protection as the best way to keep the company operating after a federal pandemic-era loan became unmanageable.
In a Facebook post, Wang said he wanted to be open about why the bus company filed for Chapter 11 protection under Subchapter V. He wanted to clear up confusion about what the word “bankruptcy” means.
“I know the word ‘bankruptcy’ can be alarming, so I want to be very clear from the start: Peoria Charter is not bankrupt,” Wang wrote. “The company is profitable. We had a good year.”
According to records filed in U.S. Bankruptcy Court in Peoria, the company has fewer than 50 creditors and less than $10 million in both assets and liabilities.
Wang is also known for his YouTube videos about motorcoaches on his two channels, MotorcoachWorld and J Wang, which together have more than 60,000 subscribers. He told Bus & Motorcoach News that the financial challenges of the past year have left him with less time to make videos and promote the industry.
New rate on COVID loan
The filing stems from a Main Street Loan that Peoria Charter took out in 2020 as part of the CARES Act, which was intended to help businesses survive COVID-19 shutdowns. Wang said the loan initially carried a 3.1% interest rate, but that rate later increased to 8.44%.
“That change made it impossible to fully repay the loan within the five-year window the federal government required,” Wang wrote.
Wang began working at Peoria Charter in 2011 as a weekend bus driver and worked his way up through the company. He later became a co-owner before purchasing the family-owned business outright in October 2024, inheriting the government debt as part of the sale.
“I spent my entire first year as CEO researching, planning, and trying every possible path to get through it,” Wang wrote.
Wang said he contacted state officials, the governor’s office, the White House and multiple legislators seeking relief or refinancing options but received no solution. He said he later learned of other small businesses being forced into liquidation as similar loans came due.
“I could not let that happen to Peoria Charter,” Wang wrote.
Operations continue normally
The company filed under Subchapter V of Chapter 11, a streamlined bankruptcy option designed for small businesses that allows them to continue operating while restructuring debt.
“The good news is that we filed under Subchapter V,” Wang wrote. “It allows us to keep operating normally while we resolve this one loan. The process is expected to take only a few months.”
Wang said Peoria Charter continues to pay its vendors promptly and has never been late on a payment.
“We do not owe our vendors money,” he wrote. “We pay our bills as soon as they come in, and Peoria Charter has never been late on a payment.”
Employees have shown support for the filing, including Safety Director Ciaran Maloney.
Other bills are being paid
In a Facebook post, he said he wanted friends and family to understand what was happening and to make sure the correct information was shared.
“This loan was originally around 3% for the interest, which was manageable, but then jumped to over 8%,” Maloney wrote. “This loan is the only debt our company had.”
Maloney said the higher interest rate and short repayment period made it impossible to meet the final balloon payment.
“We were not able to make the balloon payment that came at the end of the term,” he wrote.
“Our operations will still keep rolling,” Maloney wrote, adding that trips will not be canceled and workers will not lose their jobs.
Company attorney Jeana Reinbold said the company’s main debt is the large loan from the Main Street Loan Program, while payments for buses, equipment and other expenses are being paid on time and will continue.
Peoria Charter, based in Peoria’s North Valley, transports more than 400,000 passengers annually and travels more than 3 million miles each year. Wang said the company will continue operating at the same level of service throughout the restructuring process.
“This is not how I imagined my first year as owner and CEO would go,” Wang wrote. “But I believe this will make Peoria Charter stronger, and it will make me a better leader.”
