YRC to be dropped from Dow transports index
Dow Jones says it is removing YRC because of carrier's financial restructuring plans.
YRC Worldwide Inc. will be dropped from the 20-stock Dow Jones Transportation Index after the markets close on Friday, Dec. 11, the Dow Jones Indexes said Tuesday. YRC will be replaced in the index by Delta Air Lines.
Dow Jones is removing YRC because of the carrier's financial restructuring plans, the indexes said in a statement. YRC's debt-for-equity swap, which has a Dec. 8 deadline for approval, would give bondholders control of about 95 percent of YRC's common stock in exchange for $530 million in debt. If too few bondholders participate, YRC could file for bankruptcy protection, which disqualifies a stock from being part of the Dow Jones Averages, the indexes said.
Several analysts believe YRC lacks the support of a sufficient percentage of bondholders to execute the swap as currently constructed. YRC has said it is optimistic about the deal's prospects.
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Executive Editor - News
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
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