YRC Worldwide is asking the Teamsters union and pension fund managers for more time to restructure the trucking company’s troubled balance sheet.
YRC announced an agreement with lenders on Tuesday that extends payment terms on a credit plan and asset-based securitization facility until May 2011, including a requirement to recapitalize its balance sheet by Feb. 28.
That would extend a restructuring due at the end of this year, which requires approval from the Teamsters and managers of the multi-employer pension funds that have granted YRC financial concessions over the past two years.
YRC Worldwide news from JOC:
YRC’s Next Steps.
“We appreciate the continued support of all our stakeholders as we work to finalize our comprehensive recovery plan,” YRC Executive Vice President and Chief Financial Officer Sheila Taylor said in a prepared statement.
“These amendments are another indication of the positive dialogue with our lenders and their further interest in a long-term solution for the company.”
The company has arrested the steep slide in business that has cut into its market share and helped trigger more than $2 billion in losses in nearly three years. But YRC still reported a $178 million operating loss in the first nine months of 2010, and the company carried only $114.9 million in cash at the end of the third quarter against $850 million in long-term debt.