YRC again pushes back deadline for equity deal
YRC Worldwide extends deadline for debt-for-equity swap for second time, amid hope deal could be struck soon.
YRC Worldwide Inc. today extended until Dec. 17 the deadline for more bondholders to accept a proposal to exchange approximately $530 billion in debt in return for 1 billion new equity shares and effective control of the troubled less-than-truckload carrier.
At the same time, the short-range extension has given rise to hope that a deal will soon be struck with YRC's key stakeholders—notably its lenders and organized labor—to successfully complete the exchange.
YRC's lenders have stipulated that at least 95 percent of its bondholders must agree to the swap before they will release $106 million of a revolving credit line to YRC and allow the carrier to defer interest payments and other expenses in 2010. Through the most recent deadline of Dec. 15, 75 percent of the bondholders had agreed to the exchange. Should the swap fail, it is expected YRC will have no choice but to file for bankruptcy protection.
Analysts at JPMorgan Chase said they expect an announcement as early as Friday that the banks will accept less than 95-percent approval for the deal to go through. "A threshold in the 80- to 85-percent range would appear to allow a realistic potential" for a successful completion, Morgan analysts said in a research note distributed Dec. 15.More articles by Mark B. Solomon
Join the Discussion
After you comment, click Post. If you're not already logged in, you will be asked to log in or register.
- New drug track-and-trace law "defines 3PLs place in the supply chain," trade group says
- Nearly 2,000 brokers lose operating licenses following warning notice on higher surety bond limits
- Freight interests back legislation to boost fuel taxes 15 percent over three years
- Amazon's delivery drones seen as bid to overcome company's Achilles Heel
- Amazon tests delivery by drone
Feedback: What did you think of this article? We'd like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please ?Subject=Feedback - : YRC again pushes back deadline for equity deal">contact Editorial Director Peter Bradley. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.