The Car and Truck Fleet and Leasing Management Magazine

Chile Bus Operator Plans Bankruptcy Filing

August 27, 2014

Alsacia SA, Santiago, Chile's largest bus operator, missed a bond payment and said it will file a debt restructuring plan, according to a report by Bloomberg news. The bus company operates 1,495 buses in the Transsantiago transport system.

The company told Bloomberg in an e-mailed statement that it missed its $39.6-million payment on notes due in 2018 because it needs the money to pay suppliers and employees. The company also said it has reached a preliminary agreement with bondholders, which sent bond prices up.

Alsaica's inability to pay was also caused, in part, by new government regulations, a fall in ridership, and passengers cheating on fares, according to the Bloomberg report.

Alsacia, whose transportation concession runs through 2018, will issue $347.3 million in new bonds due in December 2018. The bonds can be extended if the concession is renewed, according to the Bloomberg report.

Twitter Facebook Google+

Comments

Please note that comments may be moderated. 
Leave this field empty:
 
 

FleetFAQ

Fleet Tracking And Telematics

Todd Ewing from Fleetmatics will answer your questions and challenges

View All

 

Fleet Management And Leasing

Merchants Experts will answer your questions and challenges

View All

 

Up Next

More From The World's Largest Fleet Publisher