Yellow | What Is Really Happening To YRC!

[Buccaneer]

For those that don't know, YRC is caught in this "credit crunch" like everyone else except the problem is they were using credit to leverage their financial position. Now that credit is not available nor is business due to poor economy, they have no way to raise operating cash, which is what makes the payrolls and debt payments go round. Actually the company numbers are not that bad. The company is worth about $5 billion and debt is about $1.5 billion but their remaining assets are not liquid hence no cash. Their credit agreement (covenant) is listed in one of their April SEC 8K filings in it's entirety if your interested (260 pages). No one dreamed then that our economy would drop into recession/depression, their stock would drop into penny stock range, and their credit ratings would drop into junk bond status. Even though S&P dropped them to a B rating it does not really hurt the company except through perception and the $7 to $10 million cost of collaterizing their rolling stock and some more real estate through the triggering of this ratings drop as part of the original covenant. Hence trying to sell RE, sell off / lease backs, and now give back requests from it's employees in order to try and get CASH liquidity to stay afloat through the bad times. They are current / ahead on their credit terms, payments, and agreements - that is not the problem yet. I'm certainly no expert on this but I believe I have a basic grasp and trying to share some understanding during a not-so-good time for a lot of us.:smilie_132:

 

[Docksteward]

Thanks for the post and I think you are right on mark with your remarks. DS.

 

[menoscab]

More worried about what's GOING to happen

Yea, I'm caught in a credit crunch too! (layed-off)

I need someone out there to send me money to pay MY bills

Sounds to me like bad decisions were made on our behalf

Not to worry though, they can always come back to the working man to bail them out after they screw things up

A little extortion action

 

[imported_armydriver]

The fuzzy math of the company being worth $5 billion$ no chance!
The credit rating rating being dropped to b! Is no big deal! You dont have a clue! It makes barrowing money a lot tougher and a lot more expensive! If you can get it! Hence you will have to borrow at a higher interest rate than if you had a higher ratning! The company is trying to borrow money to pay down debt! While getting some of the higher interest bonds paid off on paper! It will still owe basicly the same amount of debt! To a small degree a smaller interest rate on some of it! They have i believe $129 million debt payment in the first quarter next year! Thats what all this jockeying around is for for! Miss a debt payment and the rest start to demand there money and the house of cards begins to collaspe!!

 

[Vwaggs]

Bottom line....

They need my cash... Give me their stock!!!

When the crunch is gone, I will have something to show for my effort aside from the finger. They get stock why can't we!!!

 

[Comftblynumb]

I am a truck driver, not a wall street accountant however it sounds to me like YRC is getting a credit card to pay a mortgage they could afford when they weren't layed off. Is this to simplistic?? It is certainly in a language we all can understand. It is something we all understand to be a bad sign.

I like to be optomistic as a rule, but I need ALOT of assurance this time. IF I vote for a giveback, I MIGHT have a job after the merger IF we survive.....

I think I will get myself a credit card while my credit is good and get it ready to make a couple mortgage payments.....

 

[BIGRNTN]

Bottom line... Part 2!

Bottom line....

They need my cash... Give me their stock!!!

When the crunch is gone, I will have something to show for my effort aside from the finger. They get stock why can't we!!!

You CANNOT fix DEBT with MORE DEBT! Why is the economy in the shape it is... DEBT!!! OH if we could just free up the Credit Lines everything would be OK..

 

[Vwaggs]

You CANNOT fix DEBT with MORE DEBT! Why is the economy in the shape it is... DEBT!!! OH if we could just free up the Credit Lines everything would be OK..

Issuing common stock in exchange for wage concessions frees up cash. It does not increase liabilities, only further diversifies owners equity. Read an accounting book, then come back and see me!!!

 

[dirttracker]

stock prices look a lot like cf when conway was taking on a new look.

 

[diesel toes]

I say we have no choice but to go along with the 15% and hope the ecomony gets better and yrc can stay alive. 50,000 people all giving 15% can make a difference.

 

[HappyYRC]

I would say you boiled it down to the basic points Comftblynumd. It hurts, but I think this company might be able to pull this off with the give backs. IF they use the savings from the merger, real estate, equipment sales and yes, salary cuts, to pay down debt, they can get out of this. We are making money right now. Look at the O/R.

 

[Hoosierky]

I would say you boiled it down to the basic points Comftblynumd. It hurts, but I think this company might be able to pull this off with the give backs. IF they use the savings from the merger, real estate, equipment sales and yes, salary cuts, to pay down debt, they can get out of this. We are making money right now. Look at the O/R.

IF is a mighty big word right now. The question is:

Do we trust $$Bill to do this with the givebacks??

Each one of us must answer that question truthfully.

 

[Vwaggs]

I say we have no choice but to go along with the 15% and hope the ecomony gets better and yrc can stay alive. 50,000 people all giving 15% can make a difference.

So they can't pay $150 mil, so you think we should give them $288 million a year for free??? DO THE MATH, WE ARE GETTING SCREWED!!!