Events Calendar
In This Section
Nudity concerns in Colorado town prompting new rules
Boeing accelerates production of 747, 777 models
Ilgauskas back in Cleveland area
Ohio AG warns about new bogus check scams
Mentally ill Ohio inmates refuse post-prison help
When it comes to sleep, few of us are getting enough
Pain in the tank: Gas prices highest since 2008
Ohio officer who died during chase laid to rest
Obama effigy hung at Rhode Island school with fired teachers
Most Read Stories
Tallmadge man dies after motorcycle crash
Passers-by call police over topless gardener
Akron police arrest suspect in Iraq war veteran's killing
Teen accused of drinking, dancing topless in club
Man on leave from Iraq war slain in Akron
Soldier on leave dies after shooting near UA
Route for funeral procession for slain Marine
Hattie's Cafe near UA to close
Macedonia prepares for budget cuts and layoffs
Blogs:
Akron Docs in Haiti:
Almost home
First Bell - On Education:
21st Century Skills and Akron’s new middle school
Pets:
Lost Mini Schnauzer around Cascade Valley Park
The Heldenfiles:
Fess Parker, R.I.P.
Akron Zips:
Is it time to go after transfers?
Tribe Matters:
Wood sidelined at least six weeks
Cleveland Browns:
Yates latest to re-sign
Balanced Ledger:
How times have changed?
Kent State Sports:
Kent State @ Illinois – NIT notebook
Cleveland Cavaliers:
Gameblog: Cavs at Chicago Bulls (Green Mascot and All)
Buckeye Blogging:
Bucks High Seed – Turner High Praise
Varsity Letters:
Jackson advances to Division I state semifinal
All Da King's Men:
ObamaCare To Reduce Premiums By 3000% ?
Blog of Mass Destruction:
Pathetic GOP Nullification Attempts
Akron Law Café:
More on Shaming Corporate Criminals
Car Chase:
2010 CONCOURS SEASON IS UPON US
Let's Talk Real Estate:
Deals in Miami?!.
Sound Check:
Willie Nelson & Family coming to the Akron Civic Theatre May 11
See Jane Style:
Who Wore What – The Oscars
HRLite House:
Horses of Courses
Akron Gamer:
Video: Gamers expected to 'reach' for new 'Halo'
Company says it will likely file for bankruptcy if offering fails
By Jim Mackinnon
Beacon Journal business writer
POSTED: 06:28 p.m. EST, Nov 09, 2009
YRC Worldwide Inc. (Nasdaq: YRCW) announced a $536.8 million debt-exchange offer today that, if it works, will help the struggling trucking giant recover its financial footing.
And if the offering fails, YRC said it likely will file for bankruptcy.
Shares fell 4 cents, or 3.3 percent, to $1.18. They are down 59 percent since Jan. 1 and 71 percent from a year ago.
Shares plunged more than 60 percent on Nov. 2 when YRC first announced the details of the debt-for-equity offering that has bondholders taking about 95 percent of the company's common stock.
The company recently reported losing $158.7 million, or $2.67 per share, in the third quarter.
Overland Park, Kan.-based YRC, parent of the former Roadway operations in Akron, said it will exchange $536.8 million in 8.5 percent notes for common and preferred stock equal to 95 percent of its common shares.
This exchange is designed to improve the company's capital structure, decrease its cash interest expense and enhance its near-term liquidity, YRC said.
YRC's Teamsters employees will get stock options. YRC offered options equal to 15 percent of the company's common stock to more than 30,000 union workers in exchange for wage and pension cuts earlier this year.
The offering deadline is just before midnight on Dec. 7, although it could be extended.
''We believe that the substantial debt reduction contemplated by the exchange offers is critical to our continuing viability,'' the company said in a regulatory filing.
If the exchange succeeds, YRC said it will be on a more solid financial base. If not, the company would file for Chapter 11 bankruptcy protection and seek to reorganize. If under Chapter 11 it cannot get needed financing, then the company said it could liquidate.
YRC said it has no plans to file for Chapter 11 if it completes the offering as expected.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
YRC Worldwide Inc. (Nasdaq: YRCW) announced a $536.8 million debt-exchange offer today that, if it works, will help the struggling trucking giant recover its financial footing.
And if the offering fails, YRC said it likely will file for bankruptcy.
Shares fell 4 cents, or 3.3 percent, to $1.18. They are down 59 percent since Jan. 1 and 71 percent from a year ago.
Shares plunged more than 60 percent on Nov. 2 when YRC first announced the details of the debt-for-equity offering that has bondholders taking about 95 percent of the company's common stock.
The company recently reported losing $158.7 million, or $2.67 per share, in the third quarter.
Overland Park, Kan.-based YRC, parent of the former Roadway operations in Akron, said it will exchange $536.8 million in 8.5 percent notes for common and preferred stock equal to 95 percent of its common shares.
This exchange is designed to improve the company's capital structure, decrease its cash interest expense and enhance its near-term liquidity, YRC said.
YRC's Teamsters employees will get stock options. YRC offered options equal to 15 percent of the company's common stock to more than 30,000 union workers in exchange for wage and pension cuts earlier this year.
The offering deadline is just before midnight on Dec. 7, although it could be extended.
''We believe that the substantial debt reduction contemplated by the exchange offers is critical to our continuing viability,'' the company said in a regulatory filing.
If the exchange succeeds, YRC said it will be on a more solid financial base. If not, the company would file for Chapter 11 bankruptcy protection and seek to reorganize. If under Chapter 11 it cannot get needed financing, then the company said it could liquidate.
YRC said it has no plans to file for Chapter 11 if it completes the offering as expected.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
Comments
Click here to post your comments
mogadore, oh
Posted 09:57 PM, 11/09/2009
Bye..bye.....been real. Trucking mergers=bankruptcy.
anderson, in
Posted 11:28 PM, 11/09/2009
You know I wouldn't wish anyone to loose their jobs especially since good paying driving jobs are hard to come by,only the guy that said bye bye,I hope people know who you are and what you are! Remember what goes around comes around and you will know it,when it happens.You must be to young to remember that when Abf got carolina there was a merg, and it wasn't bankruptsy. You must not be god and must not know as much as you think you do.
barberton, oh
Posted 08:26 AM, 11/10/2009
i worked for Roadway... Yellow butchered us. they got rid of everyone that worked hard when the company was started. lots of vacation? top of pay scale? bye bye. roadway was debt free and yellow bought us and we started a long down hill ride. i worked there 20 years and had knowledge of every aspect of the company, yet i was cut and someone who didn't know anything remains working. i am 58 and my stock for 20 years is worthless. i was smart enough not to keep all my eggs in one basket, but there were many who thought yellow would prosper---- they are really screwed. but find out how much the people who managed the company to bankruptcy are still making!
mogadore, oh
Posted 03:28 PM, 11/10/2009
Dear Rvbowers:
Please do not take my first response the wrong way. I worked in the trucking LTL business back in the 80's. I feel bad for all the hard working folks at this huge company who will probably be out of work in the not-to-distant future. Ham-handed decisions have deep-sixed this industry for years. I never understood this merger. It was doomed from the start.
Orrville, Oh
Posted 04:12 PM, 11/10/2009
Natural Law: what Mother Nature, God, or Whatever Power decreed to be the reality of the real world, God, democracy, capitalism, the US Constitution, and free, fair, and affordable commerce.
Demands: YRC; and every corporation, farmer, business, outsourcer sweatshop, and nonprofit, tax-exempt, organization and Church; markets the cost; in the wholesale and retail price of his or her product and service; Of YRC $536.8 million debt; and every workers, consumers, and taxpayers living (including pension and health care); enabling parents to love, nurse, nurture, discipline, protect, and provide for every child (job) they conceive; and fund schools, infrastructure, national security, government services, and etc.; with money derived from wages or independent business profit.
And Fathers disqualified for affirmative action with white skin, Union workers, consumers, taxpayers, and Americas grandchildren’s children; pay YRC $536.8 million debt; with money; derived; from wages or independent business profit!
akron, oh
Posted 11:35 PM, 11/10/2009
really?
Fairlawn, oh
Posted 07:09 AM, 11/11/2009
To all the workers still hanging on to YRC read the writing on the wall. Do not go down with the sinking ship, you all knew this day was coming. If I were you I would try to get on with Fed-ex, or UPS, before the market get saturated.
