FedEx Freight | Yrc

maybe someone can exlpain this to me/us ... but didn't yrc swap bond for stock ... and in case of a meltdown ... I think the bond gets the money first ... then whats left goes to the stock ... so the bond holders just traded something for nothing ... is this correct ?

slackdragon :clap:

Seems like many folks here and even on the YRC forum are still confused and think that now is a good time to buy more YRCW stock.
So here is what YRC did to buy more time.

YRC basically gave away the entire enchilada (YRCW) or 94% of the whole enchilada to the bondholders to wipe out over 500 some millions dollars worth of debt for past purchases of Roadway and USF.
So the current stock holders now own just 6% of the entire enchilada.
YRC will do a 1 for 20 reverse split to account for the extra shares they have to give to the bondholders and new owners of YRC.
So if today the current share price of YRCW is around 0.70 cents and you had 100 shares you actually have today $70 dollars. When the 1 for 20 reverse split goes thru after the current shareholders accept the reverse split, you will now own 5 shares instead of 100 shares. So you take 5 shares times 0.70 cents and now you have $3.50 net worth. So you just got wiped out.

:shift:
 
slackdragon :clap:

Seems like many folks here and even on the YRC forum are still confused and think that now is a good time to buy more YRCW stock.
So here is what YRC did to buy more time.

YRC basically gave away the entire enchilada (YRCW) or 94% of the whole enchilada to the bondholders to wipe out over 500 some millions dollars worth of debt for past purchases of Roadway and USF.
So the current stock holders now own just 6% of the entire enchilada.
YRC will do a 1 for 20 reverse split to account for the extra shares they have to give to the bondholders and new owners of YRC.
So if today the current share price of YRCW is around 0.70 cents and you had 100 shares you actually have today $70 dollars. When the 1 for 20 reverse split goes thru after the current shareholders accept the reverse split, you will now own 5 shares instead of 100 shares. So you take 5 shares times 0.70 cents and now you have $3.50 net worth. So you just got wiped out.

:shift:

I don't belong on this thread I drive for Roadway however with all due respect River you are correct except that when the split occurs if the stock is still at .70 then it is multiplied by 20 so it would actually be .70x20=14.00 p/s. 14x5 gives you 70 in stock, which is what you had. You can't lose money on the mechanics of the split. The problem is that before the reverse split occurs there will be somewhere around 1.2 billion new shares dumped causing massive dilution, hence the .70 price today is more likely to nosedive before any of this even happens. Not looking for a fight, just trying to set thigs right.
 
I'm still trying to get this all in my head .....

now 1 bond company owns (94%) of YRCW ... and got it without forclosure

so they can do what they want and no stopping them ... close .. sell property ... sell trucks .... sell the whole shebang to china .....

GEZZZZUM
.....

not good

:TR10driving03:
 
There are or was numerous bond holders. How many I don't know.......
But that brings up a good point. Between all the bond holders they own 94% of YRC. Who owns controlling interest of YRC?
 
slackdragon :clap:

Seems like many folks here and even on the YRC forum are still confused and think that now is a good time to buy more YRCW stock.
So here is what YRC did to buy more time.

YRC basically gave away the entire enchilada (YRCW) or 94% of the whole enchilada to the bondholders to wipe out over 500 some millions dollars worth of debt for past purchases of Roadway and USF.
So the current stock holders now own just 6% of the entire enchilada.
YRC will do a 1 for 20 reverse split to account for the extra shares they have to give to the bondholders and new owners of YRC.
So if today the current share price of YRCW is around 0.70 cents and you had 100 shares you actually have today $70 dollars. When the 1 for 20 reverse split goes thru after the current shareholders accept the reverse split, you will now own 5 shares instead of 100 shares. So you take 5 shares times 0.70 cents and now you have $3.50 net worth. So you just got wiped out.

:shift:

Your explaination is wrong!

Using your example in a 1-for-20 reverse stock split @ .70 per share - the stock price would increase by .70 x 20 = $14.00 per share after the reverse split is completed.

Assuming you own a 100 shares before the reverse split - your 100 shares would be reduced to 5 shares after the split. 5 shares x $14.00 = $70 total value - not $3.50.

This is a simple explanation. I don't pretend to be an expert when it comes to reverse stock splits and how they are calculated. This is offered only For What It's Worth. There are other variables to consider.
 
I don't belong on this thread I drive for Roadway however with all due respect River you are correct except that when the split occurs if the stock is still at .70 then it is multiplied by 20 so it would actually be .70x20=14.00 p/s. 14x5 gives you 70 in stock, which is what you had. You can't lose money on the mechanics of the split. The problem is that before the reverse split occurs there will be somewhere around 1.2 billion new shares dumped causing massive dilution, hence the .70 price today is more likely to nosedive before any of this even happens. Not looking for a fight, just trying to set thigs right.

Your explaination is wrong!

Using your example in a 1-for-20 reverse stock split @ .70 per share - the stock price would increase by .70 x 20 = $14.00 per share after the reverse split is completed.

Assuming you own a 100 shares before the reverse split - your 100 shares would be reduced to 5 shares after the split. 5 shares x $14.00 = $70 total value - not $3.50.

This is a simple explanation. I don't pretend to be an expert when it comes to reverse stock splits and how they are calculated. This is offered only For What It's Worth. There are other variables to consider.

Both of your explanations would be correct IF as stockholders you still owned 100% of YRCW.
But since the new bondholders will own 94% of YRC, this means that the stockholders got wiped out without going thru bankruptcy where they would have lost 100%.
The easy way to look at this is if the stock closed today at 0.8099 cents per share and now you only own 6% of the enchilada, your current share price is 0.048594 cents or close to 0.05 cents per share.

:shift:
 
Who would want to own this stock anyways? It isn't worth anything. I just can't see why the banks and bond holders keep on giving YRC an life line. This company is on life support. I just don't know anymore. Maybe I don't see the picture clear enough. I've been following this since I lost my job at Holland. Now, if I did my homework correctly, with this bond thing that just went through, YRC only has enough money for approx two months. This still isn't going to be enough for these guys to surrive. Sure they have cleared around 500 million dollars of debt give or take but they still have close to one billion dollars of debt that they still have to deal with. I would like to see how they're are going to handle that.
 
There are or was numerous bond holders. How many I don't know.......
But that brings up a good point. Between all the bond holders they own 94% of YRC. Who owns controlling interest of YRC?
There may be many bond holders ... but doesn't 1 single company run the show when bonds are sold ....thats the way the city projects are done here when its done by bonds

which brings up another question for me ....so YRCW has no assets anymore .. other than the people that work there ( and I do believe good employes are assets) ... and they have to pay lease/rents, buy fuel, and pay employees .... just where do they go now if they don't make any money, and don't they have another big debt bill coming up soon .... It seems to me that YRCW has lost money (a lot) the last several earnings reports .... ?
 
Who would want to own this stock anyways? It isn't worth anything. I just can't see why the banks and bond holders keep on giving YRC an life line. This company is on life support. I just don't know anymore. Maybe I don't see the picture clear enough. I've been following this since I lost my job at Holland. Now, if I did my homework correctly, with this bond thing that just went through, YRC only has enough money for approx two months. This still isn't going to be enough for these guys to surrive. Sure they have cleared around 500 million dollars of debt give or take but they still have close to one billion dollars of debt that they still have to deal with. I would like to see how they're are going to handle that.
they have a line of credit from the bank
 
There may be many bond holders ... but doesn't 1 single company run the show when bonds are sold ....thats the way the city projects are done here when its done by bonds

which brings up another question for me ....so YRCW has no assets anymore .. other than the people that work there ( and I do believe good employes are assets) ... and they have to pay lease/rents, buy fuel, and pay employees .... just where do they go now if they don't make any money, and don't they have another big debt bill coming up soon .... It seems to me that YRCW has lost money (a lot) the last several earnings reports .... ?
they have 1 billion in real estate. what do you mean by no assets?
 
Ok freightpimp. YRC might have a line of credit from the bank but you still have to pay it back. Line of credit is just like using a credit card. You borrow money from it and you pay it back at a high interest rate. Now, if you don't have money to pay the banks back then what? The only way to get out of that mess is by declaring bankruptcy. If YRC continues to report losses at the end of every quarter (like they have been doing) you can consider them as being finished. You have to make money in order to pay your bills.
 

Thanks for the link. It basically confirms what I was trying to say. Each share that you own now is basically worth 0.05 cents per share.
WARNING: YRC Worldwide, Inc. is issuing 922 million shares at $0.28 per share because of the debt for equity swap. Please see pg. 58 click here of the S4. Please constantly check the Blog for updates.

Purpose: This site’s purpose is to inform the public that it believes the current common equity of YRC Worldwide Inc. is worth less than $0.05. All of our facts can be verified they come from YRC Worldwide’s own website, YRC Worldwide - Overview

There is a significant short interest in the stock, roughly near 50%, and it would be very hard to find a locate. If you own any YRCW it is HIGHLY recommended that you sell all of your interests in the stock.

YRCWStock.com has come to the conclusion that YRCW stock is virtually worthless through three main determinants (Please click on the below sections to read further):

YRCWSTOCK.COM - YRC Worldwide inc. Equity Report

:shift:
 
I don't belong on this thread I drive for Roadway however with all due respect River you are correct except that when the split occurs if the stock is still at .70 then it is multiplied by 20 so it would actually be .70x20=14.00 p/s. 14x5 gives you 70 in stock, which is what you had. You can't lose money on the mechanics of the split. The problem is that before the reverse split occurs there will be somewhere around 1.2 billion new shares dumped causing massive dilution, hence the .70 price today is more likely to nosedive before any of this even happens. Not looking for a fight, just trying to set thigs right.

Your explaination is wrong!

Using your example in a 1-for-20 reverse stock split @ .70 per share - the stock price would increase by .70 x 20 = $14.00 per share after the reverse split is completed.

Assuming you own a 100 shares before the reverse split - your 100 shares would be reduced to 5 shares after the split. 5 shares x $14.00 = $70 total value - not $3.50.

This is a simple explanation. I don't pretend to be an expert when it comes to reverse stock splits and how they are calculated. This is offered only For What It's Worth. There are other variables to consider.

Shareholders of YRC Worldwide Inc. will vote Feb. 17 on a number of steps necessary following the company’s recently completed debt-for-equity swap. Now it looks like the reverse stock split will be 1 for 16 instead of the 1 for 20 like I suggested earlier. According to the article YRCW will increase the amount of authorized shares of common stock from 125 million to 2.005 billion, so 2,005 divided by 125 equals 16.04.
So at the end of the day I still think that for every NEW share you get it will be worth 0.05 cents.

2vjanft.jpg


YRC Worldwide shareholder vote on track for Feb. 17

Shareholders of YRC Worldwide Inc. will vote Feb. 17 on a number of steps necessary following the company’s recently completed debt-for-equity swap.
At the meeting, shareholders will be asked to allow the company to increase the amount of authorized shares of common stock from 125 million to 2.005 billion, reduce the par value of those shares from $1 to 1 cent, and approve a reverse stock split that would proportionately reduce the number of common shares.
YRC Worldwide shareholder vote on track for Feb. 17 - Kansas City Business Journal:

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