Yellow | "1" thing could save YRC.......1 company

[spaghettijg]

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IMO the bond deal won't mean squat. Let me throw some numbers out for an example, chime in and correct me if you can enlighten my theory. Company xyz is 1.5 Billion in debt, they get rid of 500 million of that debt. They bring in revenues of lets say 600 million per quarter. But they pay out 750 million per quarter. So where does that leave them? A company with only 1 billion in debt that still loses 150 million per quarter. Whats the gain????? other than the banks free up 100-150 million more in LOAN for the company to make payroll. Someone fill me in if this isn't what we are looking at. :TR10driving03:

Where do the Chicago No votes effect that? It doesn't, does it? It was just easier for people to blame it all on Chicago. See those numbers people. The Chicago Teamsters are responsible for that, right? In that case where is my 1 million dollar check at. I'll just file grievance for it, before 01/01/10. Because, anything after that date won't even be handled. So come on Chicago Teamsters get those grievances in for those million dollar checks that we didn't receive yet.

 

[imovaherenow]

i think its another desperate attempt and as they say their last attempt to stay afloat, but the main reason to do the debt swap is to get the 100 million...my concern is why the need to get the money...obviously they cannot make a profit during the best of months this year...you have december, jan, feb..the worst months in trucking and i agree they desperatly need the money for payroll....bottom line is you need to make money PERIOD!!!!

 

[Jay C]

Where do the Chicago No votes effect that? It doesn't, does it? It was just easier for people to blame it all on Chicago.67oiuy]

i think its another desperate attempt and as they say their last attempt to stay afloat, but the main reason to do the debt swap is to get the 100 million...my concern is why the need to get the money...obviously they cannot make a profit during the best of months this year...you have december, jan, feb..the worst months in trucking and i agree they desperatly need the money for payroll....bottom line is you need to make money PERIOD!!!!

The debt swap would have gotten rid of 30% of their debt. That is a huge percentage. They would not have to pay the $25m interest payment per Q. (waived) They would have a lot more liquidity to operate and pay wages. Operating losses have been reduced big time every quarter with all the cutting. In 2010 they expected to have positive cash flow. The Chicago vote was the final nail in the coffin.
All wages and pension cuts have to be restored now with no bond deal. Why would they want to go on now? If bond deal was OK In 2010 they expected to have positive cash flow. Rivals would likely let up on the choke hold seeing YRC won't go. What could they get in a bankruptcy court that the Teamsters gave them out of court? There is no way they could emerge from court being profitable now. Looking a lot like

[size=+2]liquidation time[/size]​