After nearly filing for bankruptcy more than once in recent years and with financial losses that aren’t stopping, the parent of the trucking company, YRC Freight, along with others, is looking at restructuring its debt yet again.
Photo: Evan Lockridge
YRC Worldwide has retained Credit Suisse and The Mavea Group to look at its refinancing and recapitalization options with debt maturities coming due in 2014 and 2015. This would be its second refinancing in two years while this week it reported its ninth loss out of the last 10 quarters.
Currently the less-than-truckload giant has nearly $1.3 billion in debt but only $219 million in cash and equivalents.
Earlier this week YRC Worldwide reported a loss for the second quarter of the year, though it was less that what it had the same time a year ago. Despite this the news sent company stock 18% lower on Wednesday.
YRC has filed a registration with the Securities and Exchange Commission to allow for the sale of $350 million in stocks and bonds to raise money, but there is no date for the sale.