YRC Corporation at the end of 2009 was on the brink of bankruptcy.
YRC reported a net loss of $976 million for its 2008 fiscal year. In 2009 it again reported a net loss of $622 million. Towards the end of 2009, YRC narrowly averted having to file for bankruptcy protection by successfully persuading its bondholders to exchange their $470 million in bond notes for roughly 94% of the company’s shares. Concurrent with more recent manufacturing sector growth and recovery, since the fourth quarter of 2009, YRC has again been approaching a net positive balance sheet.
[3]Nonetheless its share price declined in year 2010 more than 80%, raising in 2011 suspicions of
Death spiral financing.
[4] In September 2011 the company completed a financial restructuring that has essentially wiped out any shareholder equity.
[5] All employees, Teamsters included, took massive pay cuts in order to keep YRC in business.