New debt restructuring agreements YRC Worldwide reached with lenders and pension funds will allow the carrier to meet a key deadline in its bid to avoid bankruptcy.
The agreement includes an exchange offer that will give the company’s lenders approximately 72.5 percent of the carrier’s common stock after the restructuring is complete.
The company’s existing shareholders would retain approximately 2.5 percent of the company’s outstanding common stock, subject to further dilution by a management incentive plan and the conversion of certain new securities, the company said.
The agreements signed Friday also anticipate $100 million in new capital through additional stock sales, and increased liquidity from a new asset-based loan facility.
The restructuring agreements are scheduled to be in place by July 22.
The agreements cleared a potential obstacle to financial restructuring at the nation’s largest pure trucking operator, which has lost more than $2.5 billion since 2006.
Teamster multi-employer pension plans in March said they wanted a higher interest rate on deferred pension obligations owed by YRC Worldwide.
YRC Worldwide will release its first quarter financial results Friday, May 6.
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