YRC extends debt tender offer to Monday; exchange appears to make progress
New deadline for debt-for-equity swap is today.
Email
Print
Reprints
CommentYRC Worldwide Inc. said last Thursday that it has extended until today an offer to its bondholders to exchange more than $530 million in debt for more than 1 billion shares of newly issued equity and effective control of the troubled less-than-truckload (LTL) carrier.
The extension, the fourth in a month, comes as YRC reported that 80 percent of bondholders had agreed to tender their shares as of Dec. 23, which had been the most recent deadline. That figure represents an improvement over the 57 percent of bondholders that had agreed to the swap as of several days ago. Analysts said the number of bondholders agreeing to tender would increase as the clock ticked down to the Dec. 23 deadline.
YRC's lenders had originally stipulated that 95 percent of bondholders tender shares before they would free up $106 million in a revolving credit line that would allow YRC to make a $19 million payment in interest and fees by Dec. 31. Without access to those funds, YRC said it would be unlikely to make the payment by that date. Such a scenario would leave YRC little choice but to file for bankruptcy protection.
It has been reported that YRC's lenders may accept a ratio of less than 95 percent of bondholder approval in return for freeing up the funds. About 80 percent of bondholder approval is a ratio that analysts have speculated may be acceptable to the banks.
The newest deadline is 11:59 p.m. New York time on Dec. 28.
More articles by Mark B. Solomon
News FeedsJoin the Discussion
After you comment, click Post. If you're not already logged in, you will be asked to log in or register.
Resources Mentioned In This Article
Related Articles
- An inside look at Valeant Pharmaceuticals' emergency shipment program
- White House may rescind energy sector tax breaks to pay for infrastructure
- Heavy-duty truck demand in China surges in Q2
- Cass freight index turns up in August
- Schneider Logistics sheds U.S., China forwarding and brokerage operations
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 extends debt tender offer to Monday; exchange appears to make progress">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.
News Feeds