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ABF | What Does The YRC Talks Mean

After reading the posts on the yrc board looks like they will accept almost anything thrown at them. The question is when do you draw the line? Once, twice, 3 times now maybe a 4th....the race to the bottom is now on steroids ....
 
Rollin62 said:
Wasn't here soon enough to vote but at the time I probably would've voted yes with the circumstances given
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there is no doubt in my mind you would have voted yes,it is obvious to me as well as others on this site you lack a certain part of the male anatomy......... it's called a brain!
 
DCM_Doc said:
Does anybody want to wager that if YRC gets more concessions they will discount freight even more?
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The sad part about that is that the IBT has done nothing and will do nothing to prevent that from happening. And many seem to overlook how this affects us. They're not just killing YRC they are killing us in the process and we are helpless to do anything about it.
 
DCM_Doc said:
Does anybody want to wager that if YRC gets more concessions they will discount freight even more?
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BTW one would think that after YRC's discount spree after last concessions that the banks would demand to see a business model before any loans were divvied out. That money wasn't supposed to go for lower rates it was supposed to pay things off. Their ways were a recipe for disaster and now that disaster is looming. It's a travesty that the workers who gave up the most and are the most innocent in this disaster continue to be the ones who pay the most upper management's doings.
 
nothumbleenough said:
This is a Hail Mary pass being submitted 18 months ahead of a contract that was to reestablish full pension and wages at least according to significant fellows such as KK. The lending consortium has been making a killing by charging YRC exorbinate rates on this debt (10-12%) and they cannot make headway reducing their principle debt. The bankers understand the equipment problem yrc is having and just how much more money the consortium will have to give them just on equipment.

The likelihood of all this working out is less than 50%, so please give the "ABF will be back hat and hand speech a rest." As one who steadfastly supported ratifying our most recent ABF contract, I wouldn't support any further cuts just as ABF wouldn't increase lost vacation mid-contract.
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Why do you think the chance of the banks refinancing is less than 50%? From the BANKS perspective where are they going to get someone to pay 10-12% on any loans? And if they don’t refinance the loans what are they going to do with all that old and worn out equipment? Scrap metal? They could sell the property but if that was the case why hasn’t YRC sold it to pay down debt? And while YRC is not making a profit they are paying the interest on their loans and making operating costs.


 
nothumbleenough said:
This is a Hail Mary pass being submitted 18 months ahead of a contract that was to reestablish full pension and wages at least according to significant fellows such as KK. The lending consortium has been making a killing by charging YRC exorbinate rates on this debt (10-12%) and they cannot make headway reducing their principle debt. The bankers understand the equipment problem yrc is having and just how much more money the consortium will have to give them just on equipment.

The likelihood of all this working out is less than 50%, so please give the "ABF will be back hat and hand speech a rest." As one who steadfastly supported ratifying our most recent ABF contract, I wouldn't support any further cuts just as ABF wouldn't increase lost vacation mid-contract.
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mmmm I think we're being charged 22%
 
ABFer said:
Yes I am sickened by those who were duped into voting yes. Yes I see a race to the bottom continuing into its next chapter. Yes I see too many people living hand to mouth and voting in favor of anything that guarantees that hand coming up each and every week. :9529:
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Yes we know you are one of those people living to your hand to mouth because you voted no.
That's what you said you did.But we all no you are in favor in having JOB that guarantees you a good way of living.
Because you have not resign yet.
 
mrabf said:
Yes we know you are one of those people living to your hand to mouth because you voted no.
That's what you said you did.But we all no you are in favor in having JOB that guarantees you a good way of living.
Because you have not resign yet.
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Did you ever think our skills offer us a good living? Drove for big r now abf, checks stop & so do I. Always another job right around the corner....
 
One other reason YRC was interested in ABF was the technology at ABF versus YRC... This coming from OJ Simpson (big whig at YRC) himself to me!! I met him, he is Welch's right hand man.. Yes Equipment, Terminals, which they own none, Equipment which they own very little power.. Technology, assets and operational differences make you or break you in the freight business. YRC has corrected a lot, with ABF purchase they could be 100% in those 3 areas but still way in debt... ABF knew this as well and cared about employees and tradition and said no right off. In 5 years the deal may be back ON TABLE, THATS WHY THE EXTENSION, ETC...
 
Homesick said:
Why do you think the chance of the banks refinancing is less than 50%? From the BANKS perspective where are they going to get someone to pay 10-12% on any loans? And if they don’t refinance the loans what are they going to do with all that old and worn out equipment? Scrap metal? They could sell the property but if that was the case why hasn’t YRC sold it to pay down debt? And while YRC is not making a profit they are paying the interest on their loans and making operating costs.


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The best thing those banks could do right now would be to tell ol' Yeller not to worry about the principal, they will never get that back anyway, just keep making interest payments as long as they can.
 
mrabf said:
Yes we know you are one of those people living to your hand to mouth because you voted no.
That's what you said you did.But we all no you are in favor in having JOB that guarantees you a good way of living.
Because you have not resign yet.
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1) You don't know the first thing about my financial situation.
2) Yes I am a proud 'no' voter.
3) If you think this job is guaranteed in any way you are mistaken, there are very few things in life that are guaranteed.
4) I'll resign when I am good and ready and when this job is no longer of any use to me.
 
Homesick said:
Why do you think the chance of the banks refinancing is less than 50%? From the BANKS perspective where are they going to get someone to pay 10-12% on any loans? And if they don’t refinance the loans what are they going to do with all that old and worn out equipment? Scrap metal? They could sell the property but if that was the case why hasn’t YRC sold it to pay down debt? And while YRC is not making a profit they are paying the interest on their loans and making operating costs.


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Over 150 Million in losses in 2012. 54 Million in losses so far in 2013 with the 3rd Quarter being so bad they have delayed its results. Basic economics tells a rational investor the trends are not improving and the "discounting of freight" will not bring them back considering the over supply of capacity within the LTL industry.

I don't see how the banks justify extending the 1.4 Billion credit line of a company that averages over a million miles per road tractor. 10% to 12% interest being charged by traditional banks is unheard of in today's low interest environment where most businesses are charged around the prime rate which is currently 3.25%. So YRC's current interest expense is 3x what most business pay to borrow.

Scrap metal may well be the destination of the YRC fleet.
 
nothumbleenough said:
Over 150 Million in losses in 2012. 54 Million in losses so far in 2013 with the 3rd Quarter being so bad they have delayed its results. Basic economics tells a rational investor the trends are not improving and the "discounting of freight" will not bring them back considering the over supply of capacity within the LTL industry.

I don't see how the banks justify extending the 1.4 Billion credit line of a company that averages over a million miles per road tractor. 10% to 12% interest being charged by traditional banks is unheard of in today's low interest environment where most businesses are charged around the prime rate which is currently 3.25%. So YRC's current interest expense is 3x what most business pay to borrow.

Scrap metal may well be the destination of the YRC fleet.
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Well,....I don't know,....let's bring Bernie Madoff out of "retirement", and maybe he could explain how a corporation can run a deficit for about 15 years,....fool the IRS, fool the SEC, fool his investors,......insure that the top people make wads and scads of money,...up until the time they get sloppy and make some egregious mistakes,....mainly out of hubris,....and then go to jail. The lesson here is that as long as you don't get,...."sloppy",.....you can bend the rules any way you can,...tell your employees this month you're going broke,....and then the next month, offer to purchase something extravagant,....off the money you've cheated out of your employees. ........and as long as you don't get too "sloppy" and offend the wrong people, you can operate as long as you want,.....and not go to jail. If you think that when Mr. Madoff went to jail,...the corporate world was cleansed of all of it's malefactors, you're very sadly mistaken,....and very naive.....
 
Just maybe they delayed the results because they will show a profit, which will make it harder to sell concessions to the rank and file.
 
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