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

DATE: TUESDAY, May 22, 1990                   TAG: 9005220524
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-6   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: DALLAS                                LENGTH: Short

GREYHOUND TRYING TO AVERT BANKRUPTCY

Greyhound Lines Inc., acknowledging the heavy cost of a strike by its bus drivers, has asked holders of $225 million of its junk bonds to sell them back at steep discounts to keep the company out of bankruptcy.

The company also said Monday that it was changing its pay scale for drivers and withdrawing proposed bonus and pension schemes to save money.

"The ability to restructure the balance sheet in some way is very important to avoid bankruptcy," said Michael Doyle, chief financial officer.

The comment marked a dramatic change in tone from just two weeks ago, when Greyhound's chairman declared victory in the strike after contract talks failed.

"The cost of the strike has been pretty expensive," Doyle said, and cash is "very tight." Nevertheless, he said the only nationwide bus company is able to meet its payroll and buy fuel.

Greyhound issued a variety of junk bonds to refinance debt taken on in a leveraged buyout three years ago.

The bonds include $150 million due in 1995 that pay interest of 13 percent and $75 million of 12.5 percent bonds due in 1997. The two issues represented more than half the company's total debt of $359 million at the end of 1989.

by CNB