Dayton Business Journal - by DBJ Staff
Date: Monday, June 27, 2011, 8:57pm EDTaffDate: Monday, June 27, 2011, 8:57pm EDT
YRC Worldwide Inc. Latest from The Business Journals Truck shipments fall again, revving economic anxiety, American Trucking Associations saysTrucking index slips as economy slowsAs Missouri River rises, so do costs for trucking, railroad companies Follow this company 's stock price soared more than 40 percent Monday on what one equity firm called "incredible trading fury" in the trucking giant's shares.
YRC's stock price soared 48 cents per share to close at $1.60, up 42.8 percent, according to Yahoo Yahoo Latest from The Business Journals Impermium raises M in seed financingHulu's owners weigh saleStocks disappoint investors on Wall Street Follow this company Finance. The stock is up roughly 100 percent in the past three trading sessions as investors seek huge gains in the volatile stock, according to Beaconequity.com, a subsidiary of BlueWave Advisors.
The unusually high trading skyrocketed the stock to one of the most-active stocks on the Nasdaq for Monday, with 19.7 million shares trading hands. That represents an 11-fold increase from its 1.7 million shares daily average for trading.
Options trading in YRC also surged, with OptionMonster.com reporting that option volume in the trucking firm surged more than 1,200 percent Monday.
But Beaconequity.com warned the recent share increase still leaves the company's stock 60 percent down for the year and may not be an indicator of future performance. The company even cautioned that despite the implementation of a restructuring plan, many analysts still believe that the company will find it difficult to avoid bankruptcy.
"The restructuring efforts at best are going to delay the imminent bankruptcy as the company continues to operate in a tough business environment," according to Beaconequity.com.
YRC subsidiary Holland Inc. operates a terminal on Valley Street in Dayton, and is currently hiring more workers in the Dayton region. So the company's employees locally are among those closely watching the stock trading and any indication of what insight it may offer into the outcome of the company's restructuring.
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As part of its restructuring plan, YRC proposes exchanging some outstanding debt for equity, as well as issuing new equity to the International Brotherhood of Teamsters, part of an agreement that persuaded union members to accept extended concessions in October.
The company has said it expects the flood of new shares to reduce existing investors’ ownership in YRC to almost nothing.
The company has until July 22 to close the restructuring plan, which also calls for $100 million in new capital and a new, $400 million asset-backed loan to replace an existing asset-backed securitization facility. JPMorgan Chase & Co. Latest from The Business Journals Stocks climb higher to open weekReport: Comerica moves up on largest banks listingReport: Comerica moves up on largest banks listing Follow this company is the agent for the senior secured lender group and is part of the negotiations.
YRC also is embroiled in a lawsuit with competitor ABF Freight System Inc. Latest from The Business Journals Dayton's top employers add jobs in ’10YRC Worldwide expects to be delistedPope Cos. buys former FedEx terminal Follow this company , which has challenged the Teamster concessions.
ABF is seeking to reverse the Teamster concessions, claiming they violate the National Master Freight Agreement, a contract covering truckers and dockworkers across the country. ABF Freight Systems employs 630 people in Huber Heights and is the largest subsidiary of Arkansas Best Corp. Latest from The Business Journals Trucking index slips as economy slowsTrucking firms boosted by lower fuel costsOhio ranks high for manufacturing, logistics Follow this company (Nasdaq: ABFS).
The Dayton region has long been a hub for trucking companies because of its central Midwest location and the intersection of Interstates 75 and 70.
Con-Way Inc. Latest from The Business Journals Trucking index slips as economy slowsTrucking firms boosted by lower fuel costsOhio ranks high for manufacturing, logistics Follow this company ’s freight unit has two locations in the region while Old Dominion Freight Line Inc. Latest from The Business Journals Trucking index slips as economy slowsOld Dominion named LTL Carrier of the YearTrucking firms boosted by lower fuel costs Follow this company and Knight Transportation Inc. Latest from The Business Journals Trucking index slips as economy slowsTrucking firms boosted by lower fuel costsOhio ranks high for manufacturing, logistics Follow this company each have operations in Dayton.
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