YRC Worldwide shareholders overwhelmingly approved the last step in the trucking giant’s financial restructuring plan Friday, voting in favor of an internal merger that launches a massive release of new stock and effectively changes YRC’s ownership.
The merger agreement combined YRC Worldwide and its recently created YRC Merger Sub subsidiary, with YRC Worldwide as the surviving company. The merger was needed to execute the final steps of the $500 million restructuring, which was approved by YRC Worldwide, the Teamsters union and its lending group in July.
By approving the merger, shareholders authorized the issuance of hundreds of millions of shares of common stock. YRC Worldwide’s banking group will own about 72.5 percent of the company’s stock, and its Teamsters employees 25 percent.
Existing shareholders will be left with approximately 2.5 percent of YRC Worldwide’s stock after the transaction is completed. The value of the stock — 28 cents per share early Friday morning — dropped to about 10 cents by noon.
The restructuring plan cements long-term credit terms and labor concessions at the $4.3 billion company, which lost more than $2.7 billion since 2006. Its work force shrank from 66,000 employees to 32,000 employees over four years.
YRC Worldwide has narrowed its losses, with its national and regional carrier groups ending the second quarter with an operating profit. The company expects to increase its annual revenue to $4.9 billion this year, its first increase since 2006.