YRC creditors, Teamsters OK restructuring plan

The company cut wages, sold real estate and delayed debt payments to avoid bankruptcy and in February reached a restructuring deal with its creditors and the Teamsters union that would give lenders the bulk of new shares and convertible debt.

The Trucker News Services

5/2/2011

OVERLAND PARK, Kan. — Less-than-truckload giant YRC Worldwide Inc. said Friday it has reached definitive agreements with a majority of its lenders, pension funds and the Teamsters union on a restructuring plan.

More than 95 percent of the company's senior secured lenders, and all of the lenders under its asset-backed securitization facility, approved the plan. All of the company's pension funds and the union also signed off, YRC said.

YRC has teetered near bankruptcy after amassing huge debts and struggling with a downturn in the trucking industry during the recession.

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The restructuring plan anticipates the company would receive $100 million in new capital, as well a new asset-based loan facility.

It also calls for a portion of YRC's existing loans and other obligations to be exchanged for new securities.

"With these agreements, we believe that foundation is now in place, and we remain on target to close the restructuring in July," said John Lamar, YRC's chief restructuring officer and lead director.

Once the restructuring is complete, YRC's existing shareholders would hold about 2.5 percent of the company's outstanding common stock.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

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