YRC Worldwide said it reached an agreement with key stakeholders on a comprehensive restructuring plan, meeting a Feb. 28 deadline.
The company and its stakeholders, including the Teamsters union, agreed on a “non-binding term sheet” that gives the company until July to complete the plan.
Significantly, the company’s lenders agreed to waive YRC Worldwide’s first quarter EBITDA covenant requirements in view “of the harsh winter.”
YRC earnings news from JOC:
YRC Reports $23 Million Fourth Quarter Profit
The agreement “contemplates the extension” of the deferral of interest payments and fees, and “a very substantial dilution of existing equity holders,” YRC said.
YRC Worldwide also said the agreement would provide “new and additional capital” for the less-than-truckload carrier group, but did not provide details.
The company’s latest contract with the Teamsters union required an injection of $300 million in new capital into the struggling trucking operator.
YRC Worldwide lost $324 million on $4.3 billion in revenue last year. The LTL operator has lost more than $2.5 billion since 2006.
-- Contact William B. Cassidy at firstname.lastname@example.org.