Truck Driving Jobs

This is really breaking news that the Associated Press ran this afternoon about YRC . YRC is a large trucking company and the last time we ran an article about them we had quite a few comments. Here is a block quote form the Associated Press release.

YRC shares sink after debt exchange(AP) – 4 hours agoNEW YORK — YRC Worldwide Inc. shares plunged more than 50 percent Monday after the struggling trucking company said it is launching a debt exchange offer that could drastically reduce current shareholders’ stakes.The move is part of YRC’s effort to get access to cash and avoid a bankruptcy filing, which has been rumored for months. It has struggled to integrate two of it units and suffered through a dramatic falloff in freight demand amid the recession.YRC runs trucks under the Yellow, Roadway, New Penn and Holland names shipping everything from refrigerators to clothing across the U.S. through a huge network of terminals.Overland Park, Kan. YRC said it intends to launch an exchange offer of $536.8 million in 8 1/2 percent notes for common and preferred stock equal to 95 percent of its common shares, with a provision to give stock options to the company’s union employees. YRC offered options equal to 15 percent of the company’s common stock to union workers in exchange for wage and pension cuts earlier this year.The trucking company had about $1.69 billion in liabilities, but only about $1 billion in assets as of Sept. 30. YRC has sold real estate, cut thousands of jobs and renegotiated terms of its debt to stay afloat. On Friday, the company said it lost $158.7 million, or $2.67 per share in the third quarter.Shares plunged $1.93, or 53 percent, to $1.72 in afternoon trading.If the exchange is successful, it will allow the company to access $106 million in funds from a credit line reserve. It would also let the company begin to defer about $25 million in interest and fees currently owed to lenders and another $25 million per quarter in other fees related to a recently amended credit deal.The company currently has access to $50 million of the funds from the reserve for certain operational purposes and will get the rest with a two-thirds approval from its lenders.

The Associated Press: YRC shares sink after debt exchange