YRC Reaches New Agreement on Restructuring

YRC Worldwide said it has reached a definitive agreement with creditors, labor groups and pension funds that would give the company $100 million in new capital as its restructuring moves forward.

In a statement released Friday, accompanied by a 64-page Securities and Exchange Commission filing, YRC said its lenders would receive 72.5% of the company’s stock in exchange for a $100 million cash infusion.

Because the Teamsters union will hold 25% of YRC’s shares in addition to the 72.5% stake the lenders will take, the agreement would dilute the value of other current shareholders to just 2.5% of the company’s stock.

The multi-step agreement is slated to be complete by July 22, the less-than-truckload carrier said.

YRC’s latest announcement followed a February 28 statement that it had reached a non-binding agreement in principle with lenders, creditors and union interests.

YRC is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.