YRC Worldwide Extends Debt Swap Deadline Again

YRC Worldwide, trying to extend the clock on its bid to avoid bankruptcy protection, pushed back its deadline for a debt-for-equity swap by another two days on Wednesday.

The trucking giant set a new deadline of 11:59 p.m. Thursday, Dec. 17 for bondholders to accept the offer, which is aimed at clearing away some of the company’s large debt.

YRC said in a statement 75 percent of note holders had accepted the offer by the deadline at the end of the day Tuesday, up only slightly from 72 percent who had accepted the offer by the previous deadline a week ago but still far short of the 95 percent acceptance the company needs.

The company could lower that threshold with the approval of two-thirds of its bank lenders.

The company also said the Securities and Exchange Commission has told YRC it has finished reviewing filings on the offer and YRC now “expects that the SEC will declare the registration statement effective shortly.”

The debt-for-equity swap is the last line of defense against bankruptcy for the nation's largest trucking company, which lost more than $2 billion over the past two and a half years. The exchange would give bondholders 95 percent of the company's common stock and wipe out $536.8 million in debt.

The deal would trigger long-term lending agreements the company needs to improve its liquidity. It is also required by the Teamsters union, which gave YRC Worldwide broad wage and benefit concessions this year.

If the exchange fails, YRC Worldwide will try to reorganize under Chapter 11 bankruptcy protection, the company said in a Nov. 24 SEC filing.

Contact William B. Cassidy at wcassidy@joc.com.