YRC pushes back deadline for equity deal
YRC Worldwide extends debt-for-equity swap deadline after initial push fails.
YRC Worldwide Inc. said Dec. 9 it had extended until Dec. 15 the deadline for its bondholders to accept more than 1 billion shares of newly issued equity, and effective control of the company, in exchange for $530 billion in debt.
The one-week extension came as YRC fell short of getting approval from 95 percent of its bondholders for the swap by the original Dec. 8 deadline. As of Dec. 9, YRC said 72 percent of the bondholders had agreed to the exchange.
YRC's lenders had conditioned certain loan covenant modifications on YRC's meeting the 95-percent approval threshold. Failure to achieve that level could push YRC into bankruptcy protection, though it is possible the company's lenders could accept less than 95 percent approval.
In a research note, investment banker JPMorgan Chase said the 72 percent acceptance rate was higher than the firm had anticipated. The firm added, however, that it would be difficult for YRC to reach the 95-percent level by Dec. 15.
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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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