P.M. BRIEFING : Greyhound Drops Bonds Offer
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BROWNSVILLE, Tex. — Financially troubled Greyhound Lines Inc. today said it is withdrawing a tender offer for its junk bonds.
“We have withdrawn our tender offer so that we can focus on mapping out a sound debt restructuring plan for the court,” said J. Michael Doyle, senior vice president and financial officer.
The announcement came an hour before company officers were due in federal court for the first hearing on strikebound Greyhound’s Chapter 11 bankruptcy petition. Greyhound officials said the companys intend to present a budget to U.S. Bankruptcy Judge Richard Schmidt, who is hearing the case in Brownsville.
On May 21, the company asked holders of $225 million of its junk bonds to sell them back at steep discounts, saying the move was crucial to avoid the bankruptcy filing. The offer was to have expired June 18.
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