Kelley Transit’s Parent Company to Emerge from Bankruptcy Following Confirmation of Chapter 11 Plan

For over 150 years, Kelley Transit has been the bus company of choice for commuters and travelers in greater Litchfield County and throughout Connecticut.  Headquartered in Torrington, CT, the company operates a fleet of state-of-the-art commuter and chartered passenger buses driven by experienced professionals with some of the most rigorous training in the industry.

The combination of the severe recession that impacted many of its customers in 2008, the tightening credit market and increased fuel costs had made it impossible for Kelley Transit to meet its obligations as they came due.   Without a major restructuring, the company was going to go out of business, laying off many dozens of employees and leaving creditors holding millions of dollars of worthless claims.

The company hired the lawyers at Alderman & Alderman.  Myles Alderman has been representing debtors, secured creditors and others in Chapter 11 reorganizations, workouts and corporate reorganizations for over 25 years.

With the assistance of their lawyers, the company’s management worked tirelessly to restructure the company into one that will have a promising future.

The reorganized Kelley Transit will continue to provide uninterrupted commuter services, charter services, and steady

John Nason, the company’s president, said “the confirmed plan represents the culmination of a concerted effort by our management team, Myles Alderman and his team at Alderman & Alderman, our employees, our lenders, their attorneys and the many other creditors who worked together to make this reorganization possible.”employment for the many dozens of employees that count on the company for their livelihood.  It is also expected that the secured and unsecured creditors will recover substantially more than would have otherwise been possible.

A review of the monthly operating reports and the orders authorizing the use of cash collateral show that Kelley Transit made substantial investments to maintain its state-of-the-art fleet during the Chapter 11.

As is true with almost any Chapter 11 reorganization, the court records show that this case had its share of contested disputes in court.   However, when the dust had settled, the Debtor was able to present to its creditors a plan of reorganization that was supported unanimously.  Not one creditor opposed the plan.

 Myles Alderman added:  “This was a great result for this venerable company, its employees, creditors and customers.  I am glad that we were able to help. The real heroes of this story, however, are the company’s management team and many loyal employees who all pulled together to make this day possible.”

Nason Partners, LLC operates CT Transit buses from Torrington to Hartford, and operates charter services under the well-known name Kelley Transit.  Its services will continue without interruption.

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Contact:

Corinne Nason
Nason Partners, LLC
(860) 489-9243

www.kelleytransit.com