The Peoria-based transportation company filed its petition Thursday in U.S. Bankruptcy Court for the Central District of Illinois under Subchapter V, a streamlined form of Chapter 11 designed for small businesses. The filing allows the company to reorganize its debts while remaining fully operational.
Owner James Wang said the decision was driven by an unmanageable balloon payment tied to a COVID-19 relief loan the company received through the federal Main Street Lending Program. While the loan helped the business avoid layoffs and continue paying employees during the pandemic, rising interest rates significantly increased the final payment due this month.
Court filings show Peoria Charter Coach reported between $1 million and $10 million in assets and fewer than 50 creditors. Company officials said all available funds will be distributed to unsecured creditors following the bankruptcy process and noted the business has paid its bills on time aside from the final balloon payment.
Founded in 1941, Peoria Charter Coach serves more than 400,000 passengers annually and operates out of facilities in Peoria, Champaign-Urbana and Chicago. The company is widely used by college students traveling between Chicago and universities such as the University of Illinois Urbana-Champaign and Bradley University.
Peoria Charter also provides charter services nationwide and continued operations during recent severe winter weather, transporting thousands of students despite difficult road conditions.