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Yellow | YRC works out $100 million deal to avoid bankruptcy

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Troubled trucking giant YRC Worldwide Inc., one of the Kansas City area’s largest companies, said it would avoid bankruptcy and gain much needed financing under a $100 million deal signed Friday.

The company won’t get the $100 million in financing until July, but the deal promises to end years of struggling against unpaid debts and other obligations made worse by the financial crisis and recession.

YRC’s deal will “enable this company to not only survive but to hopefully regain its profitability and success in the marketplace,” said John Lamar, chief restructuring officer and lead director.

Unlike earlier efforts, this financial restructuring provides new capital that the company can use to run its business and invest in operations....................

YRC works out $100 million deal to avoid bankruptcy - KansasCity.com
 
COLKID said:
Wasn't the original deal supposed to get them 300 mill?
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They got 100 million NEW money and 350 million in new leading money .

.............On April 29, 2011, the Company entered into a support agreement (the “TNFINC Support Agreement”) with TNFINC pursuant to which TNFINC has agreed, among other things, to support the Restructuring. The conditions to TNFINC’s obligations under the TNFINC Support Agreement are substantially similar to those under the Support Agreement except that, with respect to the ABL facility, the TNFINC Support Agreement requires, among other things, $350 million in lending capacity and $80 million of availability under the ABL facility. .....................

YRC Worldwide - Current Report
 
But did anyone see this ????????/ --
"Once the transactions are complete, current stockholders will have been reduced to a 2.5 percent stake. Even that may be further reduced by an incentive program being provided to management and by some of the securities issued in the deal that can be converted to stock.Current shareholders will be asked to vote on the deal. But their ballots will be cast alongside those of the new owners who will have more than enough shares to dictate the outcome."

What does this mean? It means all the things they promised us over the last 2 years has gone bye-bye. They essentially sold the company. 97.5% of the shares to new owners!! On top that they keep giving the upper crust more and more! I can't wait to here what concessions they will need before the july 22nd deadline !!!
 
Do you really think giving management worthless stock in place of a retirement program is giving the upper crust more and more?
They didn't sell the company just add more owners.
 
Wasn't there an agreement involving real estate with regards to money they were in arrears to pension funds? What's the status of that agreement? Does this new agreement put the debt holders in line ahead of the funds in the event of liquidation? Sounds like they are looking for a new agreement on pension contributions.
 
Bill Zollars, the company’s longtime CEO, said previously he would step down once the restructuring was complete. Lamar said he expected Zollars to retire when the deal was finished in July but remain available as an adviser.
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The new owners mostly will be YRC’s unpaid lenders as well as employees represented by the Teamsters union
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And still undefeated heavyweight world champion..William Zollars
 
rocketmancve said:
Keep Bill Zollars as an advisor??? Why, so we can all re-live this nightmare again and again....
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Bill must of learned that trick from our pos local that has hired both past super prezs back as consultants after receiving their massive pensions of $120,000 and $85,000 respectively. Can't live on that, need a part-time job on the members dole!:9529::9529:
 
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