What's new

Yellow | YRC Debt Swap Faces Resistance From Creditors With Derivatives

If I remember correctly YRCW said they had contingecy plans if the swap didn't go thru.
They're caught lying again as the only real solution is Chap. 11
 
Now this paragraph is interesting.........


YRC joins companies including Yellow Pages publisher Idearc Inc. and newsprint maker AbitibiBowater Inc. that met opposition to restructure outside of bankruptcy court from creditors that hedged their holdings with credit-default swaps. Such creditors will typically get paid whether a borrower defaults or not, and sometimes can make more in a bankruptcy.

“The ability to hold protection really does change the incentives of players at the table,” said Christopher Garman, president of Garman Research LLC in Orinda, California.
 
just like "It's a Wonderful Life".
We're worth more dead than alive.
There will be no wings, just golden parachutes for some and golden showers for the rest.
 
The way I read it they have a secondary plan.

They get permission from the banks to extend the agreement. Default on the payment window to the bond holders. The bondholders with "insurance" collect their face value. Remaining bondholders are stuck with "making the deal" or risking bankruptcy. The bankruptcy guru YRCW hired really knows his stuff IMO.
That eliminates the "protected" bondholders from the mix and the 95% is of those remaining.
 
vwaggs said:
The way I read it they have a secondary plan.

They get permission from the banks to extend the agreement. Default on the payment window to the bond holders. The bondholders with "insurance" collect their face value. Remaining bondholders are stuck with "making the deal" or risking bankruptcy. The bankruptcy guru YRCW hired really knows his stuff IMO.
That eliminates the "protected" bondholders from the mix and the 95% is of those remaining.
Click to expand...

You've got to admit, in spite of all the management/executive bashing, it does seem like they really are trying to keep this ship afloat.
 
rockford files said:
If I remember correctly YRCW said they had contingecy plans if the swap didn't go thru.
They're caught lying again as the only real solution is Chap. 11
Click to expand...

YRC said before they would file bankruptsy if the exchange failed.Some analyst said there were still other options such as negotiating with the banks to lower the 95% benchmark.How have they lied?iIt is what it is. if the swap fails yrc is done,and you can take that to the bank.
 
I still think Zollars, no matter how much we hate him, should be nicknamed Felix the Cat. It seems every time we think we are done, he reaches into that magic bag of tricks to get us through one more day.

Truthfully, if he can pull this off and bring us back from the brink, he will be considered a genius. And YRC would become a lean mean shipping machine. But we have to wait and see what tomorrow will bring.
 
Animo916 said:
I still think Zollars, no matter how much we hate him, should be nicknamed Felix the Cat. It seems every time we think we are done, he reaches into that magic bag of tricks to get us through one more day.

Truthfully, if he can pull this off and bring us back from the brink, he will be considered a genius. And YRC would become a lean mean shipping machine. But we have to wait and see what tomorrow will bring.
Click to expand...

This isn't Penny Bill. This is the bankruptcy guru they just hired.
 
vwaggs said:
The way I read it they have a secondary plan.

They get permission from the banks to extend the agreement. Default on the payment window to the bond holders. The bondholders with "insurance" collect their face value. Remaining bondholders are stuck with "making the deal" or risking bankruptcy. The bankruptcy guru YRCW hired really knows his stuff IMO.
That eliminates the "protected" bondholders from the mix and the 95% is of those remaining.
Click to expand...

"YRC is considering allowing a grace period to expire on an interest payment that would trigger payouts on credit-default swaps linked to the company, the people said. That strategy, which may eliminate the incentive for swaps holders to reject the offer, would require an agreement with its lenders not to demand immediate repayment".

Waggs it sounds to me like the bondholders would get there interest payment but still have control of the bonds. Then they would go along with the stock deal. This option has a lot of moving parts and YRCW would need everything to fall perfectly in place. They have manage to do it so far so who knows.
As we can see by this, The Chicago Vote means nothing to the Bondholders. They have their ace in the whole and it WAS NOT CHICAGO....So Chicago will not be the 1 to close us down as the IBT and many other people wanted us to believe.
 
just goes to show u how much the ibt knows and knew....and in the future..how can u follow these guys who tell you time after time to do something that they have no clue of
 
vwaggs said:
This isn't Penny Bill. This is the bankruptcy guru they just hired.
Click to expand...

That's right. Billy knows he's never getting a job again, he's just happy he's check ain't bouncing and hoping he is one of those board members cut, so he can get his parachute.
 
TeamCujo said:
That's right. Billy knows he's never getting a job again, he's just happy he's check ain't bouncing and hoping he is one of those board members cut, so he can get his parachute.
Click to expand...

that reminds me, won't that 106 million be gone the next day to pay the 7 board members parachute?
 
vwaggs said:
The way I read it they have a secondary plan.

They get permission from the banks to extend the agreement. Default on the payment window to the bond holders. The bondholders with "insurance" collect their face value. Remaining bondholders are stuck with "making the deal" or risking bankruptcy. The bankruptcy guru YRCW hired really knows his stuff IMO.
That eliminates the "protected" bondholders from the mix and the 95% is of those remaining.
Click to expand...

Canadian said:
Now this paragraph is interesting.........


YRC joins companies including Yellow Pages publisher Idearc Inc. and newsprint maker AbitibiBowater Inc. that met opposition to restructure outside of bankruptcy court from creditors that hedged their holdings with credit-default swaps. Such creditors will typically get paid whether a borrower defaults or not, and sometimes can make more in a bankruptcy.

Click to expand...


It looks like Zollars and the guru met their match at the poker table. A good hedge bet paid off for the bondholders and they get a payoff in a bankruptcy. Ya can't beat getting paid twice. Zollars played his cards well but [size=+2]he will have fold..out of aces[/size]
 
imovaherenow said:
just goes to show u how much the ibt knows and knew....and in the future..how can u follow these guys who tell you time after time to do something that they have no clue of
Click to expand...

The IBT knows and knew just what they have said since this all started and they have advised all of us with our best interests in mind. If you hate the union you can always blame them for the economy, poor management of YRC, and what ever else is wrong in your life. I respect what they have done through these hard times. If the IBT would have played hard ball with YRC the way they did with so many union companies in the past we would have been closed down by now. All of us would be out of jobs today, not just the people with low seniority. Sorry to see anyone laid off but thats the way it works at a union job. Merry Christmas to all and have a safe and healthy New Year.
 
You must log in or register to reply here.
Top