Fleet Management

YRC Worldwide Looking to Borrow More Than $1 Billion to Stay Afloat

January 07, 2014

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The financially troubled parent of several trucking companies, including YRC Freight, hopes to borrow $1.15 billion to refinance its debt, according to Bloomberg News.

It consists of a five-year term for YRC Worldwide that includes two types of financing. Further details are expected to be publicly announced Thursday, the same day results are expected to be released from a vote by 26,000 YRC Teamster Union employees on extending their current labor contract into 2019.

YRC has reported annual losses since 2007. Just before the end of last year it reduced debt by $300 million, but still owes $1.4 billion due what many blame on bad decisions by prior company management, including underestimating the costs of integrating YCR Worldwide’s Yellow and Roadway businesses into one, now known as YRC Freight.

Read more from Bloomberg News

Comments

  1. 1. J Robins [ January 08, 2014 @ 10:06AM ]

    This has become a really bad company. It was led into this fiasco by a moron named William Zollars. Now many good companies are in danger of closing because of the actions of one despicable company called Yellow Freight. YRCW needs to close and disappear and all freight employees should go apply at decent companies like UPS Freight and ABF that still pay good union retirement benefits and good wages and treat the emplyees like human beings. Everyone vote no.

  2. 2. Kate [ January 08, 2014 @ 05:06PM ]

    Funny you would wait to post this until the day that voting is over if you feel you will have a better job at UPS why don't you go there? Why are you still here? Teamsters feel entitled and your not! You give just like everyone else does when there a need your not special. Wake up and take a look at the job market, I'm guessing your level of education is college? I didn't think so ... You don't stand a chance quit your bitching and go back to work

  3. 3. aldo [ January 09, 2014 @ 07:35AM ]

    Good answer kate¡¡¡¡

  4. 4. aldo [ January 09, 2014 @ 07:36AM ]

    Goog answer kate¡¡¡¡

  5. 5. aldo [ January 09, 2014 @ 07:38AM ]

    Good answer kate.¡¡¡¡

  6. 6. rick [ January 09, 2014 @ 07:43AM ]

    Hey Kate and also you two must not be active Union members so leave it alone!!!!!

  7. 7. AB [ January 09, 2014 @ 08:54AM ]

    Well Obviously Kate does know what this is all about, an thats typical of someone just reading an article. A Union Member is pissed about giving his or her payback. Its so easy for someone on the outside looking in, that doesnt know whats going to just say "hey crybaby shut your mouth an go back to work" when they know damn good an well if they had to give back a dime of thier wages, it would be fair, after all they have a degree!!. Well I have a degree an its done nothing for me, why you ask? Because a bunch of people holding larger degrees demanded more money.....Hey theres that word again. So when I went out to look for a career with my degree I wasnt going to get paid what I was worth because a bunch of "crybabys" ahead of me ruined it. So no its not just Union members its everyone, an we all have a right to make good living reguardless of what someone who believes theyre above us thinks.

    I dont agree with what that man says completly, because UPS is very hard to work for an ABF is just as up an down as everyone else. So let the cards fall an see where it goes from here an stop getting pissed off , your anger is playing right into the companies hand.
    So back to the point... until someone has given back 15% of thier wages an beneifits an was PROMISED that all would be well after 2015 an now theyre asking for more, yeah I can see someone having a problem with it. So until youve walked the walk an talked the talk an drove the trucks you dont have any right to say anything. You may wanna use that "Education" an be like Paul Harvey an learn the rest of the story before you sound off next time....
    Good Day...

  8. 8. pas [ January 09, 2014 @ 05:33PM ]

    U hit it on the head AB - these guys have been giving back to the company to help them stay afloat while the big heads are still driving the company down the tubes - I can understand trying to help all of us keep the jobs and not have to try to find a new one after years of service here, HOWEVER there were no checks n balances that i ever saw for the previous givebacks, I think Teamsters should of demanded a quarterly report on where that money was going, how the debt was getting paid down, who is sucking/skimming off the profits or even the 15% giveback of pay - which amounts to a he** of a lot of dough back to them, it sure isn't going towards any new or decent equipment, and why is it necessary to pay a finance guru advisor 6 figures - the advice obviously has been bad or they wouldn't still be in this boat - they still are not making good financial decisions, companies like Holland and the others are whats feeding this company keeping it afloat - and what has management & other 6-figure chiefs given back to help - anything? i doubt it - in fact they probably are still paying themselves bonuses. All I can say is good luck everyone i hope they can make it work, for the sake of the employees - thats a lot of unemployed workers to add to mix of already out of work people right now.

  9. 9. Roxane [ January 11, 2014 @ 02:16AM ]

    We have a new class where we work, they are all scared and believing all the contract propaganda. Somewhere someone has to tell the truth. I thought that the IBT reps in YRC were supposed to keep that truth being told, so far I don't see any thing coming from that representation, I will have lost $24,000 in the 15% I gave back to the company, not including the lost to my pension, my pension has dropped about $2000 a month from what it was 6 years ago. I understand all the business about it not being fair that YRC has inherited the pensions for CF's down fall and a few others, but we were told we would get that back after 5 years, an extension on the last contract, now they are coming back telling us we won't get that money back and they want more and make statements like "now that pay-rates are adjust to where they should be, in other words we were making way too much money before, we are moving forward and making the company better than ever! Then the come and ask for more, another extension on a contract that is soon to be what 9-10 years old. Another 5 years where we gain nothing yet the prices we pay for everything continues to climb, food, heating fuel, car fuel, clothing, furniture, housing, all keep going up and up and we are staying the same or losing. As for the banks, let their ceo's take 5 years of no bonus, none, and see how long they are happy with that! Why are we the bad guys when we want to make enough to live on, that's all we have ever wanted, and we're the bad guys. I've gotten to the place that I don't believe anyone in the YRC hierarchy and I'm too sure about the IBT top brass either, I don't see they are fighting too hard for us, maybe I'll drop my union dues, if they aren't doing anything for my why should I keep paying them???

  10. 10. Niño [ January 11, 2014 @ 07:39AM ]

    Hey AB, the word is AND not AN! You sure you have a degree?

  11. 11. Dougway [ January 17, 2014 @ 08:35AM ]

    There's a new reality in America and the Teamsters realized it when they made the initial concessions. Unfortunately, if YRC and IBT don't make a deal, the 32,000 jobs won't just be shuffled off to other Teamster companies, mostly they'll be lost to non union companies that won't even have to add many jobs, they'll just have more freight in the same trailer. The current Teamster contract is still better than the job that will be offered someday to former employees of the late, great YRC. Write it on a rock.

 

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