The Peoria Charter Coach Company filed for Chapter 11 bankruptcy Dec. 11. Peoria Charter CEO James Wang attributed the move to being unable to pay back a COVID-era loan, but said the company will continue to operate as normal.
“Unfortunately, the MSLP interest rate more than doubled over time, from 3.1% to 8.5%, and the final balloon payment became unmanageable before the December 11, 2025, deadline,” Wang told WMBD.
In December 2020, the federal government gave the Urbana-based transit company a loan as part of its emergency Coronavirus Aid, Relief, and Economic Security Act funding. Since then, the interest rate on the loan has reportedly increased from 3.1% to 8.5%, according to WMBD and Wang.
As the interest rate grew, the company became unable to complete payments for the loan, and as such had to file for Subchapter V bankruptcy. Under this type of bankruptcy, the company will be able to continue business as usual while it restructures its debt.
Chapter 11 bankruptcy is not uncommon, especially among small businesses. According to federal data, a total of 8,408 companies across the U.S. filed for Chapter 11 bankruptcy between June 30, 2024 and June 30, 2025.
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“Peoria Charter is a healthy company,” Wang told 25 News Now. “Our Chapter 11, Subchapter V restructuring has nothing to do with our current business performance.”
