The Teamsters, lenders and embattled LTL YRC Worldwide approved final terms for an asset-based lending facility, which will provide part of the necessary ongoing operational liquidity for the company as it moves ahead with its restructuring plan.

The placement of this facility is a key component of the restructuring and pre-condition to closing the transaction.

"We now are nearing the finish line on this important transaction that will help save 25,000 Teamster jobs at YRCW," said Teamsters General President Hoffa. Teamsters and YRCW have been working towards the deal for two years.

The three-year, $400 million asset-based facilities, agreed to following extensive review of financing options by the Teamsters and its advisors, will provide maximum liquidity and flexibility for operations going forward, with a structure to help put the company in a much stronger financial and operational position.

The restructuring will provide significant liquidity to YRCW, including $100 million of new capital and increased liquidity from the new asset-based lending facilities.

The three-year, $400 million asset-based loan (ABL) facility will replace the company's existing asset-backed securitization (ABS) facility. Commitments for the ABL facility comply with the agreements reached April 29 with key stakeholders providing for their support of the company's financial restructuring plan, according to a YRCW statement.

"Replacing the ABS facility with this new facility should improve the company's liquidity," said John Lamar, chief restructuring officer and lead director of YRC Worldwide." That helps support our industry's seasonal pattern of revenues and provides the financial flexibility and run room we need to grow the business."

Additionally, the restructuring will reduce company debt in the future to help pave the way for a healthier YRCW going forward.

Lamar says YRC Worldwide remains on track to close the restructuring later this month.

The announcement comes days after a court ruled that ABF can proceed in its lawsuit against YRC and the Teamsters. The lawsuit claims the deal isn't fair to other companies that are part of the National Master Freight Agreement.