In its latest effort to secure its financial strength, YRC Worldwide has launched an exchange program to unload debt instruments in exchange for the company's common stock and new Class A Convertible Preferred Stock.
YRC hopes its debt for equity exchange offer will get the transportation giant back on track.
YRC hopes its debt for equity exchange offer will get the transportation giant back on track.


Through the transaction, the less-than-truckload carrier would trade about $536.8 million in debt for about 95 percent of its equity. The effort, if successful, would put the company in a more solid financial position by improving its capital structure, decreasing its cash interest expense and enhancing its near-term liquidity, YRC said in a statement.

The move, "in concert with other steps taken over the recent past to improve its operations and cost structure, will make it more competitive and position it to take advantage of any upturn in the economy," the company said.

The company has set a Dec. 7 deadline on the offer. If the exchange offer does not address the company's needs, the company would first try to amend the exchange offer, according to the Kansas City Business Journal. If the plan still isn't working, the company said it would seek relief under the U.S. Bankruptcy Code, according to a Securities and Exchange Commission filing.

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