YRC pushes back deadline for equity deal
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.
