Events Calendar
In This Section
Ohio State beats Michigan, 21-10
Researcher says she found text on Shroud of Turin
Ohio native takes second place on 'Project Runway'
White House at odds with bishops over abortion
End of an era: Oprah ending show after 25 years
Kin want right to sue after man assumed dead
Sen. Kerry's daughter arrested in LA on DUI
Raw Video: Cop Crashes Into Car Killing 2 Teens
Hundreds of rotting deer in yard cause big stink (with video)
Most Read Stories
Police accuse bank robbery suspect of gobbling up note (with dashcam video)
Man found dead in North Akron home is identified
Dad accused of forcing son into field, killing him
NFL star Chris Spielman's wife loses cancer battle
Coventry man killed in crash at I-77 ramp
College student mistaken for deer, shot to death
Man allegedly paid teens to spit in his face
Retired firefighter who broke color barrier among those being honored
Angel Food Ministries helps stretch grocery dollars
Poor machine maintenance blamed for fire at Akron business
Actor Bernsen enjoying ride of derby movie project
Man convicted in hot-car death of father, 85
Blogs:
Pets:
Cat-loving chihuahua suckles seven abandoned kittens
The Heldenfiles:
Friday Night Notebook
Patrick McManamon:
For your Saturday entertainment …
Akron Zips:
Two blowouts, one night
Tribe Matters:
Seven players added to Tribe’s 40-man roster
Cleveland Browns:
Holmgren expresses interest in Browns position
Kent State Sports:
Singletary update
Cleveland Cavaliers:
Gameblog: Cavs at Indiana Pacers – Here’s to LBJ and Free Throws
Buckeye Blogging:
OSU – Michigan college football rivals meet in Baghdad
Varsity Letters:
Bowling season starts today
All Da King's Men:
Headed For Disaster
Blog of Mass Destruction:
Akron Law Café:
Federal Judge Declares DOMA Unconstitutional
See Jane Style:
Vintage Chic
Car Chase:
TIME TO GET YOUR COLLECTOR CARS WINTERIZED
Let's Talk Real Estate:
Silverdome Potentially SOLD!
Ohio Travels with Betty:
George is looking for a Thanksgiving buffet in Akron.
Sound Check:
Steely Dan Plays "The Royal Scam" at E.J. Thomas Hall
HRLite House:
Colloquium at University of Akron
Akron Gamer:
Nintendo's Mario endures even as games come and go
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.
