YRC Lenders Extend $325 Million Financing

YRC Lenders Extend $325 Million Financing

YRC Worldwide's lenders gave the company some financial wiggle room as the clock ticks down on a critical Teamster vote on wage and benefit concessions.

The lenders extended an asset-backed financing agreement with the trucker until Jan. 10 even if employees reject a restructuring agreement this week.

That ensures the $325 million financing agreement won't be yanked if the labor agreement is rejected and gives the company and union time to seek a second vote.

The extension was revealed in a Securities and Exchange Commission filing Oct. 26.

Earlier in the month, YRC's lenders extended the company's asset-backed loan until Oct. 19, 2011, if the Teamsters approve concessions.

The Teamsters are voting on a plan that would extend wage and benefit cuts approved last year and reduce company pension contributions 75 percent.

The union will count ballots in the ratification vote Oct. 28 and 29.

Although the majority of YRC Teamsters approved significant concessions last year, the company had to schedule further rounds of voting at some bargaining units.

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