Troubled trucking giant YRC Worldwide completed its $500 million financial restructuring Friday, cementing long-term credit terms and labor concessions that will save the company more than $1 billion through 2015.
“YRC Worldwide has accomplished what the cynics said couldn’t be done,” said John Lamar, chief restructuring officer and lead director of the $4.3 billion enterprise. “YRC Worldwide and our brands are positioned for long-term success.”
James Hoffman, 58, who has held various leadership roles with Alliant Energy of Madison, Wis., is the new YRC Worldwide board chairman.
The new YRC board of directors must name a new CEO to replace William D. Zollars.
The restructuring saved 25,000 Teamster jobs. YRC’s union employees agreed to three rounds of significant wage, benefit and pension concessions.
“Their significant sacrifices, support and hard work laid the foundation for the comprehensive restructuring,” said Teamsters General President James P. Hoffa.
Many hurdles remain for a company that has lost more than $2.7 billion in the past four years. The most imposing one is finding a route back to profitability.
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.
The company also faces a lawsuit from ABF Freight System that threatens the labor concessions at the heart of its restructuring and seeks $750 million in damages.