PEORIA (25News Now) – Peoria Charter Coach has filed for Chapter 11 bankruptcy because the bus company is unable to pay back a COVID-19-related loan from the federal government.
A statement from Peoria Charter owner and CEO James Wang said the company will continue “normal business operations” as it restructures its debt.
“Our employees, our services, and our standards of quality remain unaffected. We are still here. Still running buses. Still committed to safety, reliability, and the communities we serve,” said Wang.
Peoria Charter received emergency CARES Act funds in December 2020 after the pandemic, enabling the company to continue paying employees as the pandemic slowed the economy.
Wang said a final balloon payment became unmanageable before the Dec. 11, 2025, deadline as the interest rate on the payment more than doubled over time from 3.1% to 8.5%.
“We are not alone; there are many small businesses across the country which are facing this same COVID hangover. I just wish Congress allowed the [Main Street Loan Program] to agree to a payment plan,” he said.
“Overall, the bus industry has been recovering from the severe disruptions caused by COVID-19, with ridership and charter demand rebounding but still facing headwinds like rising fuel and labor costs, supply chain issues for parts, and lingering debt from federal relief loans like the MSLP,” Wang also said.
In his statement, Wang acknowledged there’s a stigma attached to the bankruptcy filing.
“This could give the wrong impression that Peoria Charter was unable to pay our bills and owes 48 creditors,” said Wang. “With one exception, we have paid all our bills on time. It is just that the Federal rules require us to list who we paid in the last 90 days.”
Peoria Charter has bus stops in Peoria, Bloomington-Normal, Champaign-Urbana, Chicago and its suburbs.
The company said it transports an average 400,000 people over 3 million miles a year.
Thanksgiving weekend, Peoria Charter said it transported 8,000 students during a winter storm from the suburbs and airports to the University of Illinois.
“Peoria Charter is a healthy company. We are profitable. We have positive cash flow. Our day-to-day operations are strong,” said Wang. “Our Chapter 11, Subchapter V restructuring has nothing to do with our current business performance.”
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