Laidlaw Units File for Bankruptcy Protection
Laidlaw Inc., the troubled operator of school buses and the parent of Greyhound bus lines, said it is seeking protection from creditors as it struggles to cope with a giant debt load brought on by an aggressive expansion plan gone awry.
The company said its operations will not be affected.
Laidlaw said five of its holding companies filed in Buffalo, N.Y., for reorganization under Chapter 11 of the U.S. Bankruptcy Code and are seeking similar protection in Canada.
Laidlaw said it expected to win a $200-million debtor-in-possession financing facility with GE Capital, a unit of General Electric Co.
Laidlaw shares fell nearly 2 cents to 11 cents in over-the-counter trading.