YRC Worldwide has announced it has reached an agreement in principle with major debt holders for a restructuring plan.

The plan would provide the beleaguered LTL carrier with additional capital, and a "substantial improvement" in its liquidity position, the company said in a statement.

The agreement also calls for conversion of debt into equity and the "replacement or restructuring of certain debt obligations." The plan represents a "very substantial dilution to existing equity holders," YRC said.

The terms of the agreement were not disclosed, but call for the restructuring to be completed by July.

John Lamar, YRC's chief restructuring officer, said the plan would provide the company with a "solid foundation for long-term success."

The trucking giant struggled through the economic recession and has been forced to significantly restructure its business to avoid a bankruptcy filing.