Yellow | Breaking news 4/29/11 YRCW Achieves Milestone

[R-14Driver]

YRC Worldwide Achieves Milestone, Reaching Definitive Agreements to Support the Company's Restructuring Plan

OVERLAND PARK, Kan., April 29, 2011 /PRNewswire/ -- YRC Worldwide Inc. (Nasdaq: YRCW) announced today it has entered into definitive agreements with key stakeholders providing for their support of a comprehensive restructuring plan. The company reported that more than 95 percent of the senior secured lenders have now approved the restructuring documentation, as have 100 percent of the company's multi-employer pension funds, along with the International Brotherhood of Teamsters, and 100 percent of the lenders under the company's asset-backed securitization (ABS) facility, in each case subject to the terms and conditions contained in the agreements.

"When we announced the non-binding agreement in principle in February, we noted that our primary objective was to achieve a comprehensive restructuring with a solid foundation for long-term success," said John Lamar, chief restructuring officer and lead director of YRC Worldwide. "With these agreements, we believe that foundation is now in place, and we remain on target to close the restructuring in July."

The restructuring plan set out in the definitive agreements signed today anticipates an infusion of $100 million in new capital, as well as increased liquidity from a new asset-based loan (ABL) facility, replacing the current ABS facility. In addition, the restructuring plan contemplates that a portion of the company's existing loans and other obligations will be exchanged for new securities, including the exchange of some obligations for equity. This is expected to be accomplished by a series of transactions to be completed in July, and would result in the company's existing shareholders holding approximately 2.5% of the company's outstanding common stock, subject to further dilution by a management incentive plan and the conversion of certain new securities. Important additional information can be found in the Current Report on Form 8-K to be filed today with the Securities and Exchange Commission................

YRC Worldwide Achieves Milestone, Reaching Definitive Agreements to Support the Company's Restructuring Plan (NASDAQ:YRCW)

 

[R-14Driver]

The " full " agreement with all the other parts can be found here : YRC Worldwide - Current Report in the latest 8-k

 

[usfwife]

I am very tired of reading these things......as many of you are too.....could someone please decifer and tell us in plain english the terms of this new agreement?
Anyone up to the task?
Gee, thanks.

 

[blaze]

page 3, states something about merging one of the subsdiaries into yrc with yrc being the surviving corp.
If i'm reading it right.

 

[bullfrog75]

What happened to the $300 Million they were shooting for and what about the (PENSION) contributions??

 

[SuperCourse]

One thing for sure is the existing shareholders are getting bent over again. 2.5% of outstanding.

 

[R-14Driver]

What happened to the $300 Million they were shooting for and what about the (PENSION) contributions??

.............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

And the pension was already agreed upon and had nothing to do with the Restructuring Plan .

 

[Wrench97]

page 3, states something about merging one of the subsdiaries into yrc with yrc being the surviving corp.
If i'm reading it right.

I think that this language>

Following the closing of the Exchange Offer, the Company will file a proxy statement with the SEC for the solicitation of votes to
approve a merger (the “Merger”) pursuant to which a wholly owned subsidiary of the Company would merge into the Company, with the
Company the surviving corporation and having an amended and restated certificate of incorporation permitting the automatic conversion of the
Series B Preferred Stock into New Common Stock and providing for sufficient authorized shares of New Common Stock to permit the
conversion of the New Convertible Secured Notes into New Common Stock. The Series B Preferred Stock will be permitted to vote on the
Merger on an as-converted basis along with the holders of the Company’s then outstanding common stock, as a single class. The New
Convertible Secured Notes would be permitted to vote on an as-converted basis with the Company’s common stock after the Merger is
completed.

Is referring to YRRFC merging into YRC.

Asset-Backed Securitization Amendment
On April 29, 2011, the Company as Performance Guarantor, Yellow Roadway Receivables Funding Corporation (“YRRFC”), as
Seller and the Co-Agents party thereto entered into an amendment (the “ABS Amendment”) to the Third Amended and Restated Receivables
Purchase Agreement, dated as of April 18, 2008 (as amended, the “ABS Facility”), among the Seller, Falcon Asset Securitization Company
LLC, Three Pillars Funding LLC and Amsterdam Funding Corporation, as Conduits; the financial institutions party thereto, as Committed
Purchasers; Wells Fargo Bank, N.A. (successor to Wachovia Bank, National Association), as Wells Fargo Agent and LC Issuer, SunTrust
Robinson Humphrey, Inc., as Three Pillars Agent; The Royal Bank of Scotland plc (successor to ABN AMRO Bank N.V.), as Amsterdam
Agent; and JPMorgan Chase Bank, N.A., as Falcon Agent and Administrative Agent.

 

[R-14Driver]

Thank you for clearing that up !!

I think that this language>


Is referring to YRRFC merging into YRC.

 

[pilot108]

page 3, states something about merging one of the subsdiaries into yrc with yrc being the surviving corp.
If i'm reading it right.

I'm not saying you're wrong but I could'nt find where it said that. Unless they're going to merge Reddaway in with us, I know it was talked about on their threads.

 

[bullfrog75]

Check out the last paragraph on Pg.7.... The company cannot provide you with any assurances that any restructuring can be completed out-of-court or whether the company will be required to implement the restructuring under the supervision of a (BANKRUPTCY COURT). One can only hope for the best especially after the share holders ae going to absorb another 2.5% of the outstanding debt. I would be willing to bet the ('GOOD OLE BOYS') at the IBT have a plan (C).

 

[R-14Driver]

I know none of you want to say ANYTHING good but this is the best news to come out of YRCW in a long long time ! I know it would be to much to ask that ANYONE would like this but this new agreement just stopped the company from going bankrupt !

 

[Wrench97]

That's a standard disclaimer, it's been in all the previous agreements.

 

[SuperCourse]

Check out the last paragraph on Pg.7.... The company cannot provide you with any assurances that any restructuring can be completed out-of-court or whether the company will be required to implement the restructuring under the supervision of a (BANKRUPTCY COURT). One can only hope for the best especially after the share holders ae going to absorb another 2.5% of the outstanding debt. I would be willing to bet the ('GOOD OLE BOYS') at the IBT have a plan (C).

The 2.5% is the per cent of outstanding shares that will be held by current shareholders after this massive dilution. In other words, the shares currently trading are virtually worthless.

 

[mud]

I know none of you want to say ANYTHING good but this is the best news to come out of YRCW in a long long time ! I know it would be to much to ask that ANYONE would like this but this new agreement just stopped the company from going bankrupt !

Way to much negativity on the YRC forum.

 

[Free Dumb]

Down $.55 after hours.

 

[coyote711]

..... this new agreement just stopped the company from going bankrupt !

You're absolutely right, R-14. All the fine print and details really don't matter much to us "average joes", and won't affect us one way or another. What does matter is that YRCW has stayed out of bankruptcy, and will re-start contributions to the pension fund on 6-1-2011 as earlier agreed upon.

 

[HanaLad]

Wrong

Down $.55 after hours.

$.58 after hours. That's a drop of 29.29%

 

[SuperCourse]

You're absolutely right, R-14. All the fine print and details really don't matter much to us "average joes", and won't affect us one way or another. What does matter is that YRCW has stayed out of bankruptcy, and will re-start contributions to the pension fund on 6-1-2011 as earlier agreed upon.

I'm not to sure about that. I'll have to reread it but I did see something in there about it being contingent upon a "certain agreement" being signed in regards to pension contributions.

 

[SuperCourse]

$.58 after hours. That's a drop of 29.29%

This deal will likely put it under $1.00, maybe closer to .60. And they're still going to take management incentives out of the hides of the current stockholders. You can tell a YRC stockholder by his bloody socks.