
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, June 5, 1990                   TAG: 9006050467
SECTION: BUSINESS                    PAGE: B-4   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: DALLAS                                LENGTH: Short

BUS LINE FILES FOR PROTECTION

Fears that creditors would begin repossessing buses and closing terminals led strike-bound Greyhound Lines Inc. to seek protection in federal bankruptcy court, the company says.

The only nationwide bus system filed for Chapter 11 protection from its creditors Monday. The move allows Greyhound to continue operating under court supervision while it tries to reorganize its finances.

"There will be no interruption of service," Senior Vice President J. Michael Doyle said.

The Dallas-based company has seen ridership and revenues plunge after most of its 6,300 drivers walked out March 2 in a dispute over wages and job security.

The drivers' union had no immediate comment on the Chapter 11 filing.

The company has hired about 3,000 replacement drivers and claims to have restored service to locations that provided 98 percent of revenues last year.

But the drop in ridership and the cost of fighting the sometimes violent strike drained the company's cash, including a strike fund estimated at more than $54 million.

Greyhound blamed the strike for much of its $56 million first-quarter loss.

by CNB