YRC says it’s making progress on financial restructuring negotiations
Troubled trucking giant YRC Worldwide Inc. reported “significant progress” Friday in negotiating terms of its financial restructuring, which is a week away from its next key deadline.
A short statement from the Overland Park-based carrier said its lenders, steering committee, pension funds and labor representatives have been supportive in trying to complete the agreements.
In February, YRC outlined a schedule to complete the negotiations to help the company face its debts and other obligations without resorting to bankruptcy proceedings.
Next Friday marks the date by which the documents for the restructuring are to be “in final form and acceptable to the consenting parties,” the February statement said.
YRC officials could not be reached Friday for additional comment.
The company missed a March 10 deadline to submit a non-binding agreement in principle among the parties when pension fund representatives balked at one provision. Technically, it meant a “milestone failure” under YRC’s credit agreements, the company said at the time.
Lenders, however, did not indicate any plans to declare the company in default, and the work continued, YRC said.
Friday’s progress report lacked details and did not mention the April 29 documentation deadline.
“We have been working closely with JP Morgan, agent for the senior secured lender group, the steering committee, the company’s pension funds and the Teamsters National Freight Industry Negotiating Committee, and we are very pleased with the progress that has been made and the support we have received,” the statement said.
The company has until the end of July to complete the restructuring, which it has said would substantially reduce the ownership of YRC’s current stockholders. It would be the second large dilution of stockholders.
YRC shares closed Thursday at $2.02.