- March 16, 2011, 12:50 PM ET
YRC in Danger of Bankruptcy After Missing Payment, New Filing SaysBy Avi SalzmanYRC Worldwide (YRCW) hit another snag in the road on Wednesday as the company gave notice in its annual 10-K that it had run into a “milestone failure” in its restructuring that could force it into bankruptcy. The trucking company is in the midst of a complex restructuring that hinges on lenders and the Teamsters union coming together to find a way for the company to fix its balance sheet and return to profitability. Pension plans recently announced they were seeking a higher interest rate for deferred pension payments, which triggered the failure. In its 10-K filing, YRC wrote that “A Milestone Failure has occurred because the Pension Fund Condition was not satisfied by the required date, and, as a result, the Required Lenders have the right, but not the obligation, to declare an event of default under the Credit Agreement.” In an email to employees, John Lamar, who is in charge of the restructuring for YRC, said he doesn’t expect the failure to lead to a declaration of default, as none of the lenders have so far indicated that they intend to pursue that step. “While the company’s credit agreement lenders have the right to declare an event of default under the credit agreement, the administrative agent for the credit agreement lenders does not recommend that the lenders declare an event of default at this time and the required lenders have not indicated that they intend to take such action. As is typical in negotiating any final agreement, there are still a number of provisions in our overall restructuring efforts that require consent by all parties in order to finalize the required documentation,” Lamar wrote in an email obtained by Barrons.com. YRC, which recently announced its CFO is leaving, shares fell 23% in midday trading. http://blogs.barrons.com/stockstowatchtoday/2011/...?mod=yahoobarrons |
Thread abonnieren
