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.