the deal is critical to YRC’s near term survival, and that it would relieve — but not eliminate — the threat of bankruptcy. YRC Worldwide reported a $158 million loss in the third quarter, bringing its total losses this year to $741 million. However, more than one analyst compared the debt stock swap to a virtual Chapter 11 reorganization. “We view today’s announcement as an out of court restructuring and a positive for YRC Worldwide’s long term viability, at the expense of current shareholders,” said Lee Klaskow, vice president and senior transportation and logistics analyst at Longbow Research.

yep yep yep yep

It amounts to a 1 for 20 reverse stock split.

So for every 100 shares of YRCW shares, now you own 5 shares or 5% of the company, while the bondholders will end up with 95% of YRCW.