YRC Talking With Debt Advisors, Teamsters

YRC Worldwide said Thursday that a financial advisory firm has begun talks with key holders of the carrier’s debt securities as part of an effort to strengthen the company’s cash position and capital structure.

The less-than-truckload carrier said Thursday it is in “preliminary discussions with several significant holders of debt securities,” including Tenex Capital Management, Rothschild Inc. and Alvarez and Marsal.

YRC also said it has resumed negotiations this week with the Teamsters union on pension-cost cuts that could save it as much as $500 million over 14 months and ease the burden of continuing losses that included $257.4 million in the first quarter.

Last week, a Teamsters committee and YRC began talks in Washington to try to reach agreement on new cost cuts in addition to a 10% pay cut the union agreed to earlier this year.

By Transport Topics

Staff Reporter Rip Watson contributed to this story.