Zollars Promises Global Solution for YRC

Zollars Promises Global Solution for YRC

YRC Worldwide will have a "global solution" to mounting pension and financial obligations within a few months, Chairman, CEO and President William D. Zollars said at an industrial conference Monday.

The nation's largest trucking operator, which narrowly avoided bankruptcy in 2009 and lost $274.1 million in the first quarter this year, will be hit with deferred banking and pension obligations in January that could total as much as $100 million a quarter.

The $5.3 billion company is negotiating with the Teamsters and its lenders to craft a sweeping solution, Zollars told the Reuters Manufacturing and Transportation Summit in Chicago. "We're not out of the woods yet," Zollars said at the summit. However, he expects a solution for 2011 "within the next few months."

Zollars also told Reuters that he doesn't foresee a "V-shaped" economic recovery based on increased consumer spending.

"It will take consumer spending quite a while to recover here, based on all the uncertainty that's still out there," he said at the summit, which brought together executives from companies such as General Electric, Agco, Timken, Ingersoll Rand and Caterpillar.

YRC Worldwide was the only transportation provider at the summit.

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