YRC Completes Restructuring Plan
YRC Worldwide said late Friday it has completed the financial restructuring plan it first announced in April, completing the last remaining milestones.
“YRC Worldwide has accomplished what the cynics said couldn’t be done,” said John Lamar, its chief restructuring officer.
“We are grateful to all the stakeholders — including union and non-union employees, lenders and customers — who have supported us throughout this process,” he said in a statement.
The Teamsters union saithe deal will save more than 25,000 union freight jobs at YRC and give the union 25% membership in the company.
“The completion of the restructuring is a significant accomplishment in our efforts to preserve good jobs,” Teamsters General President James Hoffa said in a statement.
The less-than-truckload carrier, which earlier in the day reported a $39 million second-quarter loss, said it has:
• Issued new convertible notes for the infusion of $100 million in new capital;
• Increased liquidity by replacing its existing asset-backed securitization facility with a new three-year, $400 million asset-based loan facility.
• Exchanged a portion of the company's loans and other obligations for new securities, including equity. As a result, the company's shareholders at the time of the exchange will be reduced to holding approximately 2.5% of YRC’s outstanding stock and will be subject to further dilution by a proposed management incentive plan and the conversion of new convertible notes.
In addition, the due dates of debt under the credit agreement and previously deferred pension payments have been extended until March 2015.
YRC is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
