yrctrucker
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"If Teamsters vote to approve the five-year labor deal, Pierson said that will enable YRC to retire more than 90 percent of long-term debt “through a range of potentially deleveraging options." Truth or Bull****???
Yellow | CFO Pierson's statement
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bandersnatch
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It's in the proposal we're voting on. You should read it. And not just the annotated summaries by KK :)
bubbadog121
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I am no investment Guru, but, the proposal accounts for $100 million per year x 5 years= $500 million.
We are 1.2 to 1.4 Billion in debt.
The present proposal will not even pay the interest of $150 million per year we are now paying, let alone, the principal.
Maybe someone who with a better understanding could flush out the math?
dreambecamenightmare
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They said before they were swapping "debt for equity" didn't happen the won't happen now. Just more corporate bull rap.
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The $3 Billion we gave up was to do that already...how's that working out?...Yeah, I thought so....
KK
bandersnatch
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It was mostly in cost savings which just reduced the accumulation of debt and allowed for the payment of operating costs through both the savings and the revolving credit mechanism.
Again, I'm making a good faith vote on the proposal in front of me. I'm not voting on previous MOUs again or the failings of previous management ideas. Like you, I can read a financial statement and crunch the numbers. They aren't good. Even a yes vote might not be enough to allow them to retire the debt (hence the 15 pages of caveats in the last SEC filing).
Again, I'm making a good faith vote on the proposal in front of me. I'm not voting on previous MOUs again or the failings of previous management ideas. Like you, I can read a financial statement and crunch the numbers. They aren't good. Even a yes vote might not be enough to allow them to retire the debt (hence the 15 pages of caveats in the last SEC filing).
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The reason we are voting AGAIN IS BECAUSE OF THE PAST FAILURES OF MANAGEMENT!
The money was pissed away that we gave them in concessions. ....KK
The money was pissed away that we gave them in concessions. ....KK
bandersnatch
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That's fine. But this isn't some sanction vote on those past failures. It's part of a (I hope to God) new plan going forward.
I still can't shake the feeling that most of the no arguments here are rooted in anger over stuff that was lost in the past. Not only have I never seen a good decision made in anger, but no matter how you vote you're never going to get that money back. We're beating a dead horse and trying to kill the one with a little bit of life left in it.
I still can't shake the feeling that most of the no arguments here are rooted in anger over stuff that was lost in the past. Not only have I never seen a good decision made in anger, but no matter how you vote you're never going to get that money back. We're beating a dead horse and trying to kill the one with a little bit of life left in it.
Most is not all anger against stuff lost in the past, but what in going on at present and will go on in the future.
bandersnatch
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Because anyone is so great at predicting the future? Acquisitions, economic crises, shipping volumes etc?
Half of the no arguments are wholly based on what was given previously or a fear that they will come back asking for more in the future. We don't know that and can't vote on it.
choppernut
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Or hidden away ? Wheres Riemer and all the other businesses figure in this ?
twisted-hippie
Twisted Herb Plantation CEO
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The reason you are voting again is because the company is not in any better situation than it was last time, despite the concessions....choose whatever scapegoat you wish. Fact is there are numerous factors, not the least of which is SG&A costs to Revenue is about 99% of what is was in 2006.
In 2006 it cost $5.736B in Salaries, Wages and Benefits to create $9.919 in revenue ($0.578:$1) in 2012 it cost $2.783B in Salaries, Wages and Benefits to create $4.851 in revenue ($0.574:$1)
That's not moving the needle much at all. 85% the work for 85% the pay combined with heavier discounts to retain/acquire shippers. It's a slipery slope as they say.
that's the whole deal right there! We did our part, they gave each other bonuses. These people are I D I O T S!!!
bigtruk_us
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Don't be skeerd
Sent from my SAMSUNG-SGH-I317 using Tapatalk
Sent from my SAMSUNG-SGH-I317 using Tapatalk
This quote is from amended form 8-k filed on December 9th. Pierson is talking about retiring 90% of the series a and series b convertible notes, which amount to about 200 million dollars. He is not talking about retiring 90% of the 1.4 billion in debt.
The effectiveness of the ratification is also conditioned on our retiring at least 90% of the aggregate outstanding principal amount of the 10.0% Series A Convertible Senior Secured Notes due 2015 (the "Series A Notes") and 10% Series B Convertible Senior Secured Notes due 2015 (the "Series B Notes") through any combination of the following options: (i) by converting to equity, (ii) by retiring through the proceeds of one or more equity offerings or (iii) by setting aside a sufficient amount of cash to redeem at maturity. Additionally, the ratification is conditioned on our making reasonable efforts to refinance our amended and restated credit agreement, including our ABL first-out delayed draw term loan facility and our ABL last-out term loan facility, on terms that are better taken as a whole than are currently in existence.
There can be no assurance that our employees will ratify the IBT Agreement or, if they do, that we will otherwise be able to satisfy the other conditions to its effectiveness, many of which are outside of our control. If the IBT Agreement is not ratified or the other conditions are not satisfied, we may be unable to restructure or refinance the portions of our debt which will mature in September of 2014 and March of 2015. See "-Liquidity Risks-We face significant liquidity challenges in the near term, which could adversely affect our financial condition." If we are unable to restructure or refinance our maturing debt, we will not have sufficient liquidity to repay the amounts owed. This would require us to restructure our entire capital structure, which would materially and adversely affect our financial condition and our ability to continue to operate our business in the ordinary course.
By Pierson saying "to continue to operate our business in the ordinary course", that's a nice way of saying we won't be able to continue to operate.
The vote no or yes simply comes down to, do you believe that they will still be open if the extension is voted down to make another "better" offer? My opinion- I'm not sure. They are creating 3 million shares of new stock to raise about 30 million in cash. Is that to help pay the 60 million ish they owe on Feb. 15th? Is that their plan b if this gets voted down- Scrape together the cash for that payment and get an extension in place before the September notes come do? Btw, there is NO arguing, they DON'T have the money to pay that bill, it's over 350 million. This is the highest of high stakes poker......
Btw, it would be nice if there were this many visits to truckingboards and this much passionate and heated debate when elections for the IBT came around. IMO, the IBT is asleep at the wheel. They couldn't have done any less. All of us dues paying members should be berating the IBT, and our local leadership who have basically done NOTHING other than take a flight to Dallas and pretend they were all mute. Everyone who took the time to post anything on this site should take the 5 minutes to call their local any strongly voice their displeasure over their inaction.....
Bigjeffp46
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