Posted on 12/31/2009 9:24:32 AM PST by FromLori
YRC Worldwide Inc. reached its goals in the 11th hour to complete a debt-for-equity swap, allowing the trucking company to avoid a possible bankruptcy filing by deferring looming debt payments.
Chairman and Chief Executive Bill Zollars called the results "a major turning point" and said, "With our significantly restructured balance sheet and enhanced liquidity, we will move forward from a more solid financial foundation."
YRC shares fell 14% to 85 cents in Thursday morning trading, and shares of rival trucking companies also declined. The stock was above $3 when terms of the proposed debt-for-equity swap was announced last month.
The largest independent less-than-truckload carrier, which said it "will be open for business as usual on Monday" was trying to complete the exchange in time to make a New Year's debt payment and defer $19 million in interest and fees, a move the company has deemed crucial to its liquidity. YRC on Thursday said it expects to defer additional lender interest and fees of $20 million to $25 million per quarter next year, depending on how much it uses its credit facilities.
The company said 88% of the notes had been tendered as of 11:59 p.m. EST Wednesday, up from 81% 24 hours earlier. YRC received tenders for notes with a total $470 million in face value.
The company last week obtained the necessary approvals for lenders and others to allow the swap, which has been extended many times, to move forward, including getting the minimum support level required reduced to 70% for notes due next year and 85% for two other series. As of Wednesday night, the rate was 70% for the 2010 notes and 94% for the other notes, compared with Tuesday's levels of 59% and 94%, respectively.
(Excerpt) Read more at online.wsj.com ...
Lori did you hear yesterday that the Mortgage bailout program was $900,000 PER home?
The commentator said at that rate the Feds could buy the home and give them to the mortgage holder cheaper.
No good heavens I believe it ridiculous if we are forced to pay for all this you are right we would be better off doing that.
Link only
U.S. in fiscal peril with $12.1 trillion debt
http://www.usatoday.com/money/economy/2009-12-30-debt_N.htm?loc=interstitialskip
IMF: The Riskiest Mortgage Lenders Contributed The Most To Lobbyists
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