Teamsters Postpone Protest in Support of YRC

The Teamsters Union planned to hold an unusual picketing action outside the offices of Brigade Capital Management in New York to urge the hedge fund to cooperate with YRC Worldwide in its effort to restructure its debt.

The union postponed the protest after learning that Brigade no longer owns any YRC bonds. UBS, a bank also targeted in union actions, indicated they have tendered their bonds in the exchange.

The protest slated for Wednesday was to encourage Brigade to join other bondholders and take part in a debt-to-equity exchange that the country’s largest less-than-truckload carrier needs as it tries to avoid bankruptcy.

The trucking company, which employs 30,000 Teamster members, faces a deadline Dec. 31 for a debt payment YRC says it cannot make without the new liquidity. YRC needs a minimum of 70 percent of holders of 8½ percent notes to agree to the debt swap deal.

The union earlier charged that Wall Street firms including Brigade Capital Management and JMB Capital Partners and banks including UBS, Barclays and TD Bank have helped push YRC toward bankruptcy with credit-default deals that essentially bet on the company’s financial collapse.

The union protest was meant to encourage bondholders to take part in the exchange or sell to someone that will.

“All bondholders need to recognize that the livelihoods of 30,000 Teamster members depend on their willingness to take part in the exchange,” said Teamsters General President Jim Hoffa. “The workers, the pension funds, the secured lenders, a majority of bondholders and other stakeholders have made sacrifices and contributed to the restructuring.”

“Now it is time for the remaining bondholders to recognize what is at stake and do their part. The company’s customers need to know there is a light at the end of this tunnel.”

Last week, the Teamsters Union also called upon the Securities and Exchange Commission, state attorneys general, state insurance commissioners and congressional oversight leaders to investigate the activities of bondholders and traders involved in credit-default deals.

Teamsters say their members’ pension funds are the source of capital for many of the same institutions and that they will long remember if they contribute to YRCW’s failure.

Contact Thomas L. Gallagher at tgallagher@joc.com.