YRC Worldwide Looking to Borrow More Than $1 Billion to Stay Afloat
January 07, 2014
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.