OVERLAND PARK, Kan. — YRC Worldwide Inc. said Wednesday that shareholders approved steps to help the financially troubled trucking company complete the private sale of $70 million in convertible notes.
Shares fell 14.9 cents, or 27 percent, to 40 cents in afternoon trading.
YRC said shareholders voted to increase the amount of authorized shares and reduce the par value of the stock. They also authorized a reverse stock split to reduce the share count later on — a move expected in the first half of this year.
YRC said it would issue common stock to convert preferred shares that were issued in a debt-for-equity swap with bondholders.
The company, based in Overland Park, operates trucks under Yellow, Roadway and New Penn names. It was hit hard by the recession, which cut demand for freight hauling, and YRC was burdened with debt from an integration of two business units.
Kevin Jones of The Trucker staff can be reached for comment at email@example.com.
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