What's new

Holland | YRCW pension deferral in case you missed it

Deferred Payments NEWS

Form 8-K for YRC WORLDWIDE INC


--------------------------------------------------------------------------------

20-Apr-2009

Entry into a Material Definitive Agreement



Item 1.01. Entry into a Material Definitive Agreement
On April 15, 2009, YRC Worldwide Inc. (the "Company") and certain of its subsidiaries entered into Amendment No. 4 to the Credit Agreement (the "Credit Agreement Amendment"), which amends the Credit Agreement, dated as of August 17, 2007 (as amended, the "Credit Agreement"), among the Company, certain of its subsidiaries, JPMorgan Chase Bank, National Association, as agent, and the other lenders that are parties thereto. The Credit Agreement continues to provide the Company with a $950 million senior revolving credit facility, including sublimits available for borrowings under certain foreign currencies and for letters of credit, and a senior term loan in an aggregate outstanding principal amount of approximately $111.5 million.

The Credit Agreement Amendment:

� permits the Company and its subsidiaries to defer the payment of certain of their multiemployer benefit fund contributions to a date no earlier than January 1, 2010 (collectively, the "Deferred Payments");

� permits the Company and its subsidiaries to grant first priority liens on identified owned real property to secure the Deferred Payments;

� permits subsidiary guarantors under the Credit Agreement to guarantee the Deferred Payments solely to the extent that such subsidiary guarantors own any real property subject to a permitted lien securing the Deferred Payments;

� prohibits the Company and its subsidiaries from voluntarily making any Deferred Payment prior to August 15, 2009, except for payments solely with net cash proceeds from the sale of collateral securing the Deferred Payments;

� decreases the amount of net cash proceeds from the Specified Sale and Leaseback Transaction (as defined in the Credit Agreement) which may be retained by the Company by an amount proportionate to the net book value of the collateral securing the Deferred Payments; provided, that such reduction shall not exceed $50.0 million;

� reduces the permitted asset sale basket for the fiscal year ending December 31, 2009 by an amount proportionate to the net book value of the collateral securing the Deferred Payments; provided, that such reduction shall not exceed $50.0 million; and

� allows the Company to undertake debt for equity swaps and to pay certain indebtedness with the net cash proceeds from the issuance of equity.
 
Here is a cut and paste from the ibt website. “The Teamsters National Freight Division will continue to monitor the situation
closely on a daily basis and will take whatever actions are necessary to ensure that
members’ pension and health and welfare benefits are protected during these
difficult times.” What a Joke, let me just get all delusional and think the ibt gives
a rats butt, monitor this ::shit:: :eck13:
 
From what I have read it says the funds get first lien rights against owned property. Would you rather have nothing in the event of a bankruptcy, or some dirt and buildings to sell and get cash ? YRC must conserve cash now in an effort to sustain operations in this economic downturn. Business levels have not improved so cash is needed to continue operations until the economy rebounds.
I am not painting a picture of sunshine, but we must look at every possibility to ensure the funds can continue paying health benefits and pension payments.
 
Show me the money

sarcastic b said:
Now we know why the sold terminals to Estes, This will hide money when they go bankrupt
Click to expand...
I like the name “sarcastic b” anyway, me doing a little quick math here.
Yrc says they spend 34 to 45 million a month on pension payments they
Want to defer. Lets see, 40 mill x 5 months = 200 million. So I should believe yrc has 200
Mill worth of property and we should trust them were getting our pension money back
Someday? And That the already broke :eck13: funds wont collapse? Call me pessimistic b
 
freefromdat said:
Here is a cut and paste from the ibt website. “The Teamsters National Freight Division will continue to monitor the situation
closely on a daily basis and will take whatever actions are necessary to ensure that
members’ pension and health and welfare benefits are protected during these
difficult times.” What a Joke, let me just get all delusional and think the ibt gives
a rats butt, monitor this ::shit:: :eck13:
Click to expand...
Now what should be written in this statement. The teamsters national freight division will continue to monitor the situation closely on a daily basis to make sure they are getting their fair share of the money that yrc has promised them behind closed doors.......LOL. This is just the icing on the cake....to anyone that believes this yrc regime will be around years from now needs to step into reality.YRC----->:TR10driving03:
 
If YRC is in such dire financial straits then maybe its time to sell off their chinese trucking company . Wonder if Hung-Chow has taken a pay cut ??
 
wee scwew u

Moparman said:
I thought that Estes deal fell through and that"s why their turning to the pension fund.
Click to expand...
Haven’t seen anything solid on that. As for selling off hop sing Chinese trucking, yrc
Doesn’t own it yet, they paid $40 mill up front and the other $39 mill is due april of
Next year. The Chinese don’t give anything back EVER, that money is gone. all yrc can
do is pay up the rest or walk and lose the down payment.
 
You must log in or register to reply here.
Top