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Yellow | Central States 4Q results ##warning could be hazardous to your pension health##

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sirduckjr

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https://www.centralstatesfunds.org/CSF/Pdf/Arbitration_Letters/4-1-2008-4th2008.pdf


Not good, but by no means a surprise. Went from $26.8 Billion down to $17.3 Billion.

Also, 35% less contributing to the plan. This is due to both UPS leaving and the layoffs. I would imagine it will only get worse in the 1Q though.

As a side note, and the dead horse I keep beating, if you all want YRC to continue in business next year without filing a bankruptcy, take note.

YRC has roughly $240 million (unsecured) and $160 million (secured) coming due in bonds in 2010. Failure to pay will, not may, but will result in bankruptcy. Getting a loan in the dysfunctional credit market is not very likely, so this is a real concern.

I am urging fellow Teamsters to encourage the Trustees to allow the Fudciaries to purchase these junk bonds at a significant discount and all the time earning a very respectable rate of return somewhere in the range of 8-15%.
I doubt it would take no more than 175 million of Central States Funds to purchase these bonds.

It is pretty simple, the central states pension needs its share of the 600 million YRC pays into the teamster pensions every year and YRC needs somebody to buy these bonds for it to continue. A match made in purgatory!

Please contact your trustee if you think this is a good idea.

Fred Gregare, Jerry Younger, George Westley, and Charles Whobrey.
 
Wow Would buying those bonds have any rights to have a Union trustee on the YRC executive board, or perhaps to some sort of advisory board, so as to be able to input some real world experience to the operations of the company?
 
sirduckjr said:
https://www.centralstatesfunds.org/CSF/Pdf/Arbitration_Letters/4-1-2008-4th2008.pdf


Not good, but by no means a surprise. Went from $26.8 Billion down to $17.3 Billion.

Also, 35% less contributing to the plan. This is due to both UPS leaving and the layoffs. I would imagine it will only get worse in the 1Q though.

As a side note, and the dead horse I keep beating, if you all want YRC to continue in business next year without filing a bankruptcy, take note.

YRC has roughly $240 million (unsecured) and $160 million (secured) coming due in bonds in 2010. Failure to pay will, not may, but will result in bankruptcy. Getting a loan in the dysfunctional credit market is not very likely, so this is a real concern.

I am urging fellow Teamsters to encourage the Trustees to allow the Fudciaries to purchase these junk bonds at a significant discount and all the time earning a very respectable rate of return somewhere in the range of 8-15%.
I doubt it would take no more than 175 million of Central States Funds to purchase these bonds.

It is pretty simple, the central states pension needs its share of the 600 million YRC pays into the teamster pensions every year and YRC needs somebody to buy these bonds for it to continue. A match made in purgatory!

Please contact your trustee if you think this is a good idea.

Fred Gregare, Jerry Younger, George Westley, and Charles Whobrey.
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I think it is A great idea.In the event C.S. does not go along would it be possible to form our own group of investors as well? This company is worth saving!!!!! I did not get a chance at C. F. Thanks for the positive idea on a big problem we all face.
 
colkid said:
I think it is A great idea.In the event C.S. does not go along would it be possible to form our own group of investors as well? This company is worth saving!!!!! I did not get a chance at C. F. Thanks for the positive idea on a big problem we all face.
Click to expand...

A debt offering would have to take place. Unfortunately these are designed more for an institutional investor. Meaning someone significant in size like a private equity group, hedge fund or mutual fund.

Understand such an investment is very risky. Much more risky than the typical pension investment, but one must also consider the additional benefit to the plan by having the income from YRC. Without that income, the CS pension plan does not make.
 
Kevin653 said:
Wow Would buying those bonds have any rights to have a Union trustee on the YRC executive board, or perhaps to some sort of advisory board, so as to be able to input some real world experience to the operations of the company?
Click to expand...
No not really. However, the bondsholders, (especially the secured ones) would have a seat at the table if YRC didn't make it. Meaning they would play a significant role in determining if and how there would be a company on the other side.
 
I have found it interesting that YRC management has referred to CSP and its non-YRC members as orphans and that 33% (or something like that) is what they must pay into it.
Have also read that Zollars and Co. are telling Obama and anyone interested of their misfortune.
 
It would seem to me that the older guys should just keep on working until ther pensions are all gone. STAY LONGER STUPID!!

Seems to me They should pay their benies for the next year, would be cheaper than, no pension but what do I know.:puke::eck15:

Would CHOKE ON IT NOW, be nice to say, oopps did I say that.
 
Pay their own benes???

stroud120 said:
It would seem to me that the older guys should just keep on working until ther pensions are all gone. STAY LONGER STUPID!!

Seems to me They should pay their benies for the next year, would be cheaper than, no pension but what do I know.:puke::eck15:

Would CHOKE ON IT NOW, be nice to say, oopps did I say that.
Click to expand...

This may happen..... Check with your pension funds one week from now!
 
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