During YRC Worldwide's special stockholders meeting Wednesday, stockholders approved the company's $470 million debt-for-equity swap as well as the purchase of $70 million in new unsecured convertible notes in a private placement.

The proceeds from the issuance of these new notes will pay off its 2010 note obligations, with any leftover proceeds going to general corporate purposes.

The vote removes a total of $550 million in debt from the less-than-truckload giant's books.

In addition, shareholders voted to increase the company's shares from about 125 million to 2.05 billion shares and reduce the par value of the common stock. The vote also included a reverse stock split.

"This stockholder approval satisfies an important condition to closing our recently announced agreement for a private placement of $70 million in new convertible notes," said Bill Zollars, chairman and CEO of YRC Worldwide. "We thank our stockholders for their support."

According to reports by the Journal of Commerce, financial analysts are saying the approval puts the carrier in a position to avoid bankruptcy. The next step for the company will be to get its shipper customers back and gain profitability, the JOC reports.