OVERLAND PARK, Kan. — YRC Worldwide Inc. said on Friday that it has gotten a delisting notice from the Nasdaq Stock Market, and that it plans a reverse split of its stock by the end of June.
The Nasdaq notice, which YRC said it received Wednesday, came because its shares have traded below $1 for more than 30 days. YRC, one of the country's largest trucking companies, has until Aug. 30 to get the shares back above $1.
The company said it plans to carry out the reverse split between April 24, when its agreement with debt holders first permits it, and June 30. Under a reverse split, shareholders are left with fewer shares, but they are worth proportionally more. That would put the share price back above $1, satisfying Nasdaq's listing requirements.
YRC had a brush with bankruptcy near the end of 2009 and on Feb. 5 reported a fourth-quarter operating loss $95.4 million. But it said then that it has momentum coming into this year. A debt-for-equity swap in late 2009 virtually wiped out shareholders to satisfy creditors.
Shareholders have authorized a reverse split in the range of 5-to-1 to 25-to-1, but the company did not say which ratio it would choose. From the current 1 billion shares, its outstanding equity would amount to 40 million to 200 million shares after a split.
YRC shares rose almost 3 cents Friday, or 6.1 percent, and closed at almost 47 cents. They fell 2 cents, or 3.4 percent, to 45 cents after the announcement after hours.
Kevin Jones of The Trucker staff can be reached for comment at firstname.lastname@example.org.
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