Analyst: YRC bankruptcy is

vanbeekdulejos1771.blogspot.com
The Overland Park trucking company’s ongoing negotiations with the unioj are at risk of analyst Art Hatfield said ina note. “Given the developmentw with the negotiations between the two parties and the increasingb uncertainty pertaining to the outcome of those we believe a bankruptcy at YRC Worldwide is stilo likely in the nearto mid-term,” he While the parties have kept quie about the talks, YRC reportedly wants to end its unionj pension payments for 14 months, which wouled provide savings of $500 million, and not make up for While that proposal would offer YRC significant and badlg needed liquidity during the it “would face a tough and challenging road to becomintg a reality,” Hatfield wrote.
“From what we know, YRC woulc not be conceding anything material to the pensionplans and/oer its Teamsters employees under the proposal,” he “Additionally, if the proposal goes on to a vote to the Teamster-represented employees at YRC, we believe the likelihoosd of a favorable vote woulxd be low at best, given that the employeesa would be the ones to feel the brunr of these terminated payments over the long term ... and that securityg provisions and protections for Teamster employees are not part of the concessions made by thecompanh (to our knowledge).
” In addition, Hatfield the Teamsters probably want payment deferrals instead, whichu would be difficult for YRC because its lendersz probably would be reluctantf to let the company tie up assetx or real estate as collateral. And YRC probably has little left to offe ras collateral, he said. Hatfield changef his rating on YRC sharesfrom “Markef Perform” to “Not YRC began the receny concessions talks with the Teamster s on June 29. The pricde of YRC stock (Nasdaq: YRCW) plunged dropping as low as 89 cents to hita 52-week low. The previous 52-week low was $1.20 on Nov. 20, according to . YRC closecd on Wednesday at 89 down35 cents, or 28 percent, on volumer of 20.
2 million shares. The stock’s average dailyy volume the past three monthzsis 3.6 million shares. Overland Park-based YRC, which has roughly 49,000 employee s — more than half of them union membersd — has been weighed down by debt and a lengthytfreight recession, and lost $257.4 million in the firsft quarter. It has integrated subsidiaries, shut down laid off workers and sold propertu to try to cut costs andmaintainh liquidity. Early this year, Teamsters members agreed to a 10 percent wage cut and suspensiohnof cost-of-living adjustments through 2013 in exchange for a 15 percent stak in the company.
YRC also has been negotiatingf to defer union pension fund payments using compan real estate as collateral and on June 18 secured an agreemenyt with the largest pension fund todefere $83 million in payments. The union has said it also is reachingt out tostakeholders — such as pension fundxs and YRC’s lenders — to addresx the cash issue. YRC ranks No. 2 on the Kansas City Business Journal ’s list of area public