Motor Coach Industries Inc. announced Monday it has filed for Chapter 11 bankruptcy protection as part of a restructuring the company says will help shed hundreds of millions of dollars of debt.

The Schaumburg, Ill.-based company operates a bus plant in Pembina, in northeast North Dakota, that employs about 225 people. The company said in a statement that the restructuring will have "no impact to coach production or service."

MCI officials notified North Dakota officials on Monday of the Chapter 11 bankruptcy filing, state Commerce Commissioner Shane Goettle said.

"They gave us a head's up on what they were doing," Goettle said. "They say they will continue production, meet all orders, and they don't intend any layoffs."

MCI said the pre-negotiated bankruptcy filing will reduce the company's debt by $420 million by cutting interest by $54 million annually.

Company officials could not be reached for further comment Monday.

Tom Sorrells, MCI president and chief operating officer, said in the statement that the company hopes to emerge from the bankruptcy process by February.

"We made the strategic decision to significantly reduce our debt, strengthen our balance sheet and access new capital through a voluntary filing under chapter 11 so that we can build on our leadership position in the industry," Sorrells' statement said. "We intend to work with our current vendors and to continue operations without interruption to our customers."

North Dakota has provided the company with incentives in the past, including low-interest loans. Goettle said those loans have all been paid off.

The bankruptcy "is not affecting the state at all because we have no outstanding loans with MCI," Goettle said. "Our concern is with continued production and any layoffs."

MCI makes big buses for public transportation and motor coaches that are used as luxury RVs. At its peak in the mid-1990s, the Pembina bus plant had more than 800 people on the payroll.

MCI's main plant is in Winnipeg while the Pembina assembly plant is 60 miles away - just over the border in northeastern North Dakota to satisfy conditions of the federal Buy America Act, which requires buses involved in federal contracts be produced in the United States.

MCI said in May that soaring fuels prices was helping bus ridership and sales. The company said at that time that it had an order of 102 hybrid diesel-electric buses for Houston's transit system, under a contract worth about $80 million. Another 126 diesel-only buses were being shipped out to New York City's transit system in a deal worth $67 million.