Yellow | YRC Worldwide and Its Lenders Agree to Extend Provisions under the Credit Facilities

[metalmikex]

To the Joe:
You're exhausting, your right you don't know anything of history and even less about corp. debt. YRC is in a death spiral.


You, then know more then JP Morgan, you think they don't have 10m on hand to make a payment or at least 100m in liquidity?. All they got is nickels and dimes to play with right? Just so you know..the 10m was a fee that was waived..not a must payment. Jp is one of the largest banks in the world. An investment bank that survived the crash.. They are letting YRC run and waived the 10m fee [size=+2] only because they have the liquidity which was $218 million at the end of June, [/size]

Or could it be they know they can't get the money back if
they have to sell the few terminals and pcs. of equipment that is left...........Most of the people who get paid to report on what is happening to this sinking ship, all say the same thing. We are burning at the very least 50 million extra a month. If that's true, there's 150 million of the reported 218 million they had. Sales staff and the peeps in the know have said we lost 150 million in July,& 69 million in August. If this is true I think the cord is gonna be cut sooner than later...

 

[imovaherenow]

this quarterly results will say alot...interestingly they are releasing it in the morning before the market opens??

i say yrc will be out of cash by january...just my thoughts

 

[hoosierbilly]

i say yrc will be out of cash by january...just my thoughts

It will be a tough stretch from here to year-end with a handful of days with zero revenue or very little revenue (Thanksgiving Thursday and Friday, X-Mas eve and day, New year's eve and day. ) No revenue + huge outlay of holiday pay will be a big hurdle as cash strapped as they seem to be.

 

[hoosierbilly]

I've been lurking here for some time. Many times I've felt compelled to post when I've seen blatantly false information but I've always resisted the urge. Sorry, I can't resist anymore.



First, the 10M was NOT waived; only postponed until the 30th. That's not to say it won't get postponed again, but if you know anything about banks, you know that they don't leave any money on the table.

Secondly, it's apparent that as of today, YRC does not have $100M on hand. If they did they wouldn't need another amendment. Instead of the amendment PR you'd have a PR patting themselves on the back saying "see, we have the money, things are changing."

The most conservative Wall St. estimates peg YRC for having a 3Q loss of $100.3M. At the end of June they had $218M in liquidity of which $165M was CASH. So by now they should have roughly $65M plus whatever money they've received from asset sales. My gut feeling is they may be receiving some more real estate money between now and the end of the month that'll shore up that account some.

It's also apparent that the banks want YRC to survive - they're worth more as an operating entity than in liquidation. Look for the banks to continue to cut YRC slack so long as they keep getting paid. But when every last piece of dirt is sold and there's nothing left to mortgage, that will be the end - nobody will lend them another dime. YRC has to stem its operating losses now otherwise they'll never see spring - no matter how much Joe cheerleads and speaks of rainbows and unicorns.

Great post.
Glad you finally jumped in..

 

[boston 25]

Look, we all need to take s step back and take the emotion out of it. We all argued back and forth about the vote and now the same thing with the impending third qtr. numbers. After asking someone who works in the investment business about this they said everything they see and hear hinges on the numbers come the 30th. Now if we can look at our own terminals and the freight levels I think we are in serious trouble. I work for New Penn and we saw a brief 6 or 7 week rise in freight, but it appears to have dropped off. I'm sure that things are not much better anywhere else. It's sad to say but through everything we have all done it appears to me the ride is coming to an end.

 

[COLKID]

Forvette, you are stuck in April '09. That shut down nonsense is old now. YRCW will make it through 2010. Guys like yourself are the ones who need to face reality.

The reality is that YRCW's fortunes are tied to the economy. As the economy slowly climbs back, so will we. The banks know that we will be a money making machine when the economy comes back, and they will get their money back and then some. We ain't going anywhere.

2010 is going to rock! :rockon::beerchug::d6625240:

Very nice post!!

 

[Gondofini]

How much stimulus money did JP Morgan get?

 

[Jay C]

How much stimulus money did JP Morgan get?

I've been lurking here for some time.

Many times I've felt compelled to post when I've seen blatantly false information but I've always resisted the urge.

Sorry, I can't resist anymore.



First, the 10M was NOT waived; only postponed until the 30th. That's not to say it won't get postponed again, but if

you know anything about banks, you know that they don't leave any money on the table.

Secondly, it's apparent that as of today, YRC does not have $100M on hand.

If they did they wouldn't need another amendment.

Instead of the amendment PR you'd have a PR patting themselves on the back saying "see, we have the money, things are changing."

The most conservative Wall St. estimates peg YRC for having a 3Q loss of $100.3M. At the end of June they had $218M in liquidity of which $165M was CASH. So by now they should have roughly $65M plus whatever money they've received from asset sales. My gut feeling is they may be receiving some more real estate money between now and the end of the month that'll shore up that account some.

It's also apparent that the banks want YRC to survive - they're worth more as an operating entity than in liquidation. Look for the banks to continue to cut YRC slack so long as they keep getting paid. But when every last piece of dirt is sold and there's nothing left to mortgage, that will be the end - nobody will lend them another dime.

YRC has to stem its operating losses now otherwise they'll never see spring - no matter how much Joe cheerleads and speaks of rainbows and unicorns

.

JP Morgan might be lookin a little further down the road then the spring or they would have pulled the lifeline by now. You are correct. The 10m fee was waived till Oct 30th and yes banks will fee you to death. How long have we been kickin this around? 18 months or so. YRC has drastically cut the operating cost. Major improvements. Will they go from a $300+m loss to a profit in 1 quarter. I doubt it. This quote from Zollars: "We believe we will have a long-term solution with our lenders in the very near term," stated Bill Zollars, "By extending the revolver reserve, we retain the flexibility needed to reach an agreement with the lenders that will fully support our comprehensive plan"

In other words he's saying forget the minumum liquidity requirements and fees or [size=+2]stick it[/size] Zollars is a better card player then you might think. Maybe we find out on Oct 30th

 

[imported_dejabo]

15% Less and no pension.....And still can’t come up with the money. Asking non-union employs they have to take furlough with out pay because they do not have the money to make payroll!!! All is well says Mr.Zollars…….

 

[turboj]

Waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
Honestly, is there a bigger piece of :: cry baby on this board than you?

Well, that may be true. But its going to be so sweet to see you and the ones just like you pull their heads out of their rearends just in time to have a mouth full of that sandwich the pos company has waiting for you the moment before the locks go on the gate. By the way, while you're at it, have a nice big cup of go:tongue0002:yourself. PS: And even if by some miracle this pos company does survive, its nice knowing that he!! will freeze over before you ever get a call to come back! hahaha!!!

 

[spaghettijg]

Very nice post!!

As the money machine keeps printing. The value of the dollar goes down. YRC will bounce back, when the union is gone. That is what YRC's plans are. I am sure we will for vote for another 5% cut in salary, after the NEW YEAR if we are still around.

 

[you suck]

it is never too late to walk in the gate with your ON STRIKE sign

 

[spaghettijg]

it is never too late to walk in the gate with your ON STRIKE sign

The union won't saction it, that's the problem.

 

[Jay C]