Financially troubled less-than-truckload carrier YRC Worldwide announced it will get an infusion of $100 million in new capital and increased liquidity so it can move ahead with its restructuring plan.
The company reported that more than 95 percent of the senior secured lenders have now approved the restructuring documentation, as have 100 percent of the company's multi-employer pension funds, along with the International Brotherhood of Teamsters, and 100 percent of the lenders under the company's asset-backed securitization facility.
"With these agreements, we believe that foundation is now in place, and we remain on target to close the restructuring in July," said John Lamar, YRC's chief restructuring officer and lead director.
The Kansas City Star notes that "shareholders will be nearly wiped out, because the deal will turn at least 97.5 percent of the company over to new owners. The new owners mostly will be YRC's unpaid lenders as well as employees represented by the Teamsters union."
YRC has closed terminals, laid off employees, negotiated three rounds of concessions with the Teamsters, made changes in leadership, and other efforts to keep the company going. The Overland Park, Kan.-based company became an LTL giant through a series of mergers, including with Roadway Corp. and USF Corp., which left it with major amounts of debt just as the financial crisis and recession hit.
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