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Yellow | Company says it will likely file for bankruptcy if offering fails

Kennesaw Kid

Kennesaw Kid

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They said it....KK.

''We believe that the substantial debt reduction contemplated by the exchange offers is critical to our continuing viability,'' the company said in a regulatory filing.

If the exchange succeeds, YRC said it will be on a more solid financial base. If not, the company would file for Chapter 11 bankruptcy protection and seek to reorganize. If under Chapter 11 it cannot get needed financing, then the company said it could liquidate.


Ohio.com - YRC makes debt-exchange offer
 
Kennesaw Kid said:
They said it....KK.

''We believe that the substantial debt reduction contemplated by the exchange offers is critical to our continuing viability,'' the company said in a regulatory filing.

If the exchange succeeds, YRC said it will be on a more solid financial base. If not, the company would file for Chapter 11 bankruptcy protection and seek to reorganize. If under Chapter 11 it cannot get needed financing, then the company said it could liquidate.


Ohio.com - YRC makes debt-exchange offer
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Awhhh, they don't really mean it. This is all for the bond holders and none of the customers will see this and run to the other LTLs. ::shit:: I can already see the Rainbows. Ye of little faith must believe.....:clap:
 
get ready boys Bill and his crew no, i should say the banks are setting the tables for another 5% wage reduction . They got mgmt to take one day off a month furloghs just last month so I would not be surprised if jimmy demands MORE equal sacrifice
hope im wrong but the writing is on the wall
 
Zollars said if he didn`t get the last contract approved they would file for bankruptcy,if they didn`t get the 10% wage reduction,they would file,(Not really sure how the pension suspension happened),and if they didn`t get the 5% wage reduction they would file.It all worked so I guess Zollars figures,why shouldn`t it work again.And it probably will.Are more concessions next or is this the path to profitability?No one knows.If the debt outweighs the assets YRC has little to lose by filing bankruptcy.
 
wolf said:
Awhhh, they don't really mean it. This is all for the bond holders and none of the customers will see this and run to the other LTLs. ::shit:: I can already see the Rainbows. Ye of little faith must believe.....:clap:
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This news should send the last of what customers are left screaming for the hills.
 
Kennesaw Kid said:
They said it....KK.

''We believe that the substantial debt reduction contemplated by the exchange offers is critical to our continuing viability,'' the company said in a regulatory filing.

If the exchange succeeds, YRC said it will be on a more solid financial base. If not, the company would file for Chapter 11 bankruptcy protection and seek to reorganize. If under Chapter 11 it cannot get needed financing, then the company said it could liquidate.


Ohio.com - YRC makes debt-exchange offer
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Isn`t this exchange offer basically a bankruptcy procedure without the court supervision.:nutkick:
 
Boy oh boy all you GLOOM AND DOOMERS, sounds like you boys have been reading my past posts, "WELCOME TO THE STROUD SCHOOL. Where are my LOVERS AND DREAMERS NOW. Can you all say :puke::eck15: to YRC.
 
How much would a bond holder get in a bankruptcy?
How much could they gain if they owned worthless stock?
I read in a book ( that's right a book ) this is called a lose/lose outcome.
 
This entire year, we all have had to wait with bated breath as one important date after another came up, such as, the merge, the votes, and the covenant renegotiations. Did you think the year was going to end differently? The bondholder deal is just another date that will pass uneventfully.

I've said it before, and I'll say it again, you guys scare easily!

When this deal goes through, it will then be a waiting game for the economy to come back. It's looking good there too.


2010 is going to rock! :rockon::dance:
 
Box Lover said:
This entire year, we all have had to wait with bated breath as one important date after another came up, such as, the merge, the votes, and the covenant renegotiations. Did you think the year was going to end differently? The bondholder deal is just another date that will pass uneventfully.

I've said it before, and I'll say it again, you guys scare easily!

When this deal goes through, it will then be a waiting game for the economy to come back. It's looking good there too.


2010 is going to rock! :rockon::dance:
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Very good post brother we must try to stay positive.However its very hard to stay positive when your living on a unemployment check and no health insurance.I get so angry when I think about what Dollar Bill ,and his team did to this company.It takes 15 years of senority to have a regular job at this company now .:TR10driving03:
 
All this bond deal does is get rid of some debt. Ok, now instead of 1.65 billion in debt they only have 1.1 billion in debt. And they are losing money every quarter still!! So what have they gained?? Not a thing.
 
The way I understand it, in addition to knocking the debt down to about 1.1 billion, the deal will free up money that would have been paid in interest on the bonds to go towards the remaining debt.

It's kind of like if you have three credit cards that are maxed out. If you magically get rid of one, not only do you not have to pay back the balance on it, you don't have to pay the monthly interest charges on it either. The money you save in interest every month can be used to pay off the remaining two cards, or at least keep you in a position to at least pay the interest on them.

Let's not forget that the 1.1 billion that would be left, is not all due at the same time. It's all about keeping up with the payments.
 
Box Lover said:
The way I understand it, in addition to knocking the debt down to about 1.1 billion, the deal will free up money that would have been paid in interest on the bonds to go towards the remaining debt.

It's kind of like if you have three credit cards that are maxed out. If you magically get rid of one, not only do you not have to pay back the balance on it, you don't have to pay the monthly interest charges on it either. The money you save in interest every month can be used to pay off the remaining two, or at least keep you in a position to at least pay the interest.

Let's not forget, that the 1.1 billion that would be left is not all due at the same time. It's all about keeping up with the payments.
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I understand what you are saying... but, If they don't even bring in enough money to pay operating cost then that means they are just going further into debt. If it cost me 3,000 a month to pay all my bills and I only make 2500 a month, I am in the hole 500 more every month.
 
newpenn107 said:
All this bond deal does is get rid of some debt. Ok, now instead of 1.65 billion in debt they only have 1.1 billion in debt. And they are losing money every quarter still!! So what have they gained?? Not a thing.
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Spoken like someone who truly doesn't have a clue. Sure it eliminates 500m+ in debt (which is 1/3 of their debt), but it also does several other things. The successful completion of this exchange would allow the company open access to the existing $106 million revolver reserve and to begin deferring payment of lender interest and fees of approximately $25 million per quarter under its recently amended credit agreement and asset-backed securitization facility through 2010 with the option to extend through 2011. The company currently has access to $50 million of the revolver reserve for certain operational purposes and the remaining reserve with a two-thirds approval from its lenders.
 
I understand what you are saying... but, If they don't even bring in enough money to pay operating cost then that means they are just going further into debt. If it cost me 3,000 a month to pay all my bills and I only make 2500 a month, I am in the hole 500 more every month.
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You make a key point here!

Did you forget, though, that they are doing another COO this quarter?

The purpose of the COO is essentially to help lower their operating costs (along with the seasonal layoffs elsewhere).
 
newpenn107 said:
All this bond deal does is get rid of some debt. Ok, now instead of 1.65 billion in debt they only have 1.1 billion in debt. And they are losing money every quarter still!! So what have they gained?? Not a thing.
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Watching the saga of yrc is like watching a dying person seek a nonexistent cure. Wake up the fat lady is about to sing.:TR10driving03:
 
regular342 said:
Spoken like someone who truly doesn't have a clue. Sure it eliminates 500m+ in debt (which is 1/3 of their debt), but it also does several other things. The successful completion of this exchange would allow the company open access to the existing $106 million revolver reserve and to begin deferring payment of lender interest and fees of approximately $25 million per quarter under its recently amended credit agreement and asset-backed securitization facility through 2010 with the option to extend through 2011. The company currently has access to $50 million of the revolver reserve for certain operational purposes and the remaining reserve with a two-thirds approval from its lenders.
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I'm impressed that you were able to copy and paste that statement with your rose colored glasses on.:biglaugh:
 
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