Yellow | CFO Pierson's statement

[Yellow who]

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).

Good Faith?? I have to laugh,, where have you been?? We collectively have given these FOOLS 3.4 BILLION dollars,, yes 3.4 BILLION!! The debt has continued to go up, and they continue to still squander our hard earned money by giving the "Good Ole Boys and Girls Club" huge raises, for what?? For the top dogs in the glass house in Overland Park to make over a combined 6 million plus H&W, all VACATION, stock incentives, and whatever else they want.. DO I want to be out of a job,, Hell NO, but I cant continue to feed Welch who was a Zollars disciple.. These two IDIOTS have ruined to many good companies, and maybe its time we collectively put them boys out to pasture,, just like they have done so many trucklines and other union men and women..

 

[yrcslave]

Good Faith?? I have to laugh,, where have you been?? We collectively have given these FOOLS 3.4 BILLION dollars,, yes 3.4 BILLION!! The debt has continued to go up, and they continue to still squander our hard earned money by giving the "Good Ole Boys and Girls Club" huge raises, for what?? For the top dogs in the glass house in Overland Park to make over a combined 6 million plus H&W, all VACATION, stock incentives, and whatever else they want.. DO I want to be out of a job,, Hell NO, but I cant continue to feed Welch who was a Zollars disciple.. These two IDIOTS have ruined to many good companies, and maybe its time we collectively put them boys out to pasture,, just like they have done so many trucklines and other union men and women..

I agree. I hope these past few CEO, CFO, and COOs are toxic after this. I hope they can't get a job at anywhere. These *******s can't sell ice water in hell.

 

[Kingfishcafe]

Sadly they will get jobs, zollars is running united way, even thou yrc will go down because of poor management they will set the propaganda machine on full force and claim its the teamsters fault, and yes even. Thou it isn't true the american public will believe it, there's still tons of folks that believe it was the union and not cheap over seas steel that destroyed the steel industry,

 

[yrcslave]

Yeah it's a dream but a long shot. All these corprate types jump from one golden parachute to the next.

 

[pilot108]

We have seen some interesting things this year First a change that was uterly stupid and cost the pres his job. Then our ceo sticks his nose in the ABF contract negotiations with his buy out offer. If you think that was just a simple phone call ,well I got this bridge... Then this summer we hear about a 2 year extention that they wanted. Next the contract give backs at ABF are voted in but those darn central unions hold it up. Next it goes through with pay cuts , vac loss, purchased transportation.... Then we get to where we are now. Does anyone see collusion between welch and reynolds? ABF is now renigging on their promise on not closing terminals. They are going to have a change ofops. Do you not think they will next say that the pay cuts will be permanate? How long after yrc gets its give backs till abf wants more. Then welch will want more....you get the idea. Has any one heard welch or reynolds say the board will stop taking stock as a good faith show to stand with the workers? Hell no. They will get their raises.. and tell the buisness journals how great they are at managing companys. So I say NO! Time to stop this merry go
round . Peirson says he can find new financing but it will be hard wirh out the concessions. Starting to sound like the hostess managment, exploite the workers and keep their bonuses comming. Why not they tie them in with the o r like they want us to do. Would work out well for all of us, dont you think? But then i m just a dumb truck driver.

 

[ryc2332]

Is there any wording in that amended 8-k that states "bankruptcy" ?

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......

 

[weiner]

Yrc is just about breaking even now, at least compared to in the past. I think in 2008 the company lost over 900 million. Could be profitable if we pass this, at least till the non union companys reduce their costs.

 

[jimbobillybob]

Sadly they will get jobs, zollars is running united way, even thou yrc will go down because of poor management they will set the propaganda machine on full force and claim its the teamsters fault, and yes even. Thou it isn't true the american public will believe it, there's still tons of folks that believe it was the union and not cheap over seas steel that destroyed the steel industry,

Actually the american public will say WHO-- YRC whats that????????

Damn it,I want my funny bones man,I miss those!!!!!!!!!!!!!!!!!

 

[pilot108]

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......

What I was trying to get to in my last post is that we are on a downward spiral of consesions after concesions We are in a position to stop it here. If we say no to this they may or may not come back to us. This is the game we are playing. I'm for one to say no more give backs. The tract record they have is to take from us and then reap rewards from our pain. I for one am tired of learning after the fact that it was a done deal before we even voted. If you feel different you can vote your conscience , no one is going to see. Just remember that every time they got what they want it cost us jobs. If you think it will be different than the last time then you are a better man than I. I will be on here saying " told you so" when it happens.