Form 8-K for YRC WORLDWIDE INC. 16-Aug-2010

Discussion in 'YRC Freight' started by R-14Driver, Aug 16, 2010.

  1. R-14Driver

    R-14Driver Well-Known Member

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    Entry into a Material Definitive Agreement, Other Events, Financial Statements


    Item 1.01. Entry into a Material Definitive Agreement.

    YRC, Inc., USF Holland, Inc., New Penn Motor Express, Inc. and USF Reddaway Inc. (each a subsidiary of YRC Worldwide Inc. (the "Company")) are a party to the Contribution Deferral Agreement, dated as of June 17, 2009, as amended, supplemented or otherwise modified (the "Contribution Deferral Agreement"), with Central States, Southeast and Southwest Areas Pension Fund, certain other pension funds party thereto and Wilmington Trust Company, as agent. As previously disclosed in the Current Report on Form 8-K that the Company filed with the Securities and Exchange Commission (the "SEC") on August 3, 2010 (the "Prior 8-K"), certain provisions of Amendment No. 18 (the "Credit Agreement Amendment") to the Credit Agreement, dated as of August 17, 2007 (the "Credit Agreement"), among the Company, certain of its subsidiaries, JPMorgan Chase Bank, National Association, as agent, and the other lenders that are parties thereto were not effective until the Contribution Deferral Agreement was amended to approve the Credit Agreement Amendment.

    On August 10, 2010, the Company entered into a consent and amendment to the Contribution Deferral Agreement (the "CDA Amendment") to approve the Credit Agreement Amendment.

    The pension funds party to the Contribution Deferral Agreement consented to the terms of the Credit Agreement Amendment and agreed to continue deferring monthly amortization and interest payments without any corresponding additional payment in respect of the deferred pension obligations to the extent additional mandatory prepayments, commitment reductions, additional interest or fees or any other incremental payments are paid to the lenders pursuant to the Credit Agreement, as amended by the Credit Agreement Amendment. ................

    Summary of YRC WORLDWIDE INC. - Yahoo! Finance
     
  2. R-14Driver

    R-14Driver Well-Known Member

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  3. usfwife

    usfwife Member

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    I have read this several times and am not getting it? Someone help!
    Is it that the Pension funds agreed to the way they wanted to use the money from the sale of logistics without repayment to the funds at this time? You know we read so many of these forms you'd think we'd get it by now!
     
    Last edited by a moderator: Aug 16, 2010
  4. wolf

    wolf Stinks around here lately

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    I'm not the smartest but I think you got it right. There was probably a requirement if any major assets were sold the the 3 month deferral had to be paid first. This addresses that for the logistics sale...................I THINK
     

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