Sunday, April 17, 2011

Analyst: YRC bankruptcy is

http://timberlandbiblechurch.org/Sermons/godsprom4.htm
The Overland Park trucking company’s ongoing negotiationzs with the union are at risk of analyst Art Hatfield said ina “Given the developments with the negotiations betweenh the two parties and the increasingy uncertainty pertaining to the outcome of those negotiations, we believe a bankruptcy at YRC Worldwide is still likely in the near to he wrote. While the parties have kept quiett aboutthe talks, YRC reportedly wants to end its union pensiobn payments for 14 which would provide savings of $500 million, and not make up for While that proposal woulf offer YRC significant and badlyg needed liquidity during the period, it “would face a tougu and challenging road to becominv a reality,” Hatfield wrote.
“From what we YRC would not be conceding anythinv material to the pensionplans and/o its Teamsters employees underf the proposal,” he wrote. “Additionally, if the proposa goes on to a vote tothe Teamster-representes employees at YRC, we believe the likelihoo of a favorable vote woulrd be low at best, given that the employeeas would be the ones to feel the brunyt of these terminated payments over the long term ... and that securitty provisions and protections for Teamsters employeesd are not part of the concessions made by thecompang (to our knowledge).
” In addition, Hatfield wrote, the Teamsters probably want payment deferrals instead, whic h would be difficult for YRC because its lenderx probably would be reluctanyt to let the company tie up assets or real estate as collateral. And YRC probablt has little left to offeras collateral, he Hatfield changed his rating on YRC shares from “Marker Perform” to “Not Rated.” YRC began the recent concessions talks with the Teamsteres on June 29. The price of YRC stock (Nasdaq: YRCW) plunged Wednesday, dropping as low as 89 cents to hita 52-weejk low. The previous 52-week low was $1.20 on Nov. 20, accordint to .
YRC closed on Wednesday at 89 cents, down 35 or 28 percent, on volume of 20.2 milliomn shares. The stock’s average daily volumee the past three monthsis 3.6 million shares. Overland Park-based YRC, which has roughly 49,000 employees — more than half of them unionnmembers — has been weighed down by debt and a lengthyh freight recession, and lost $257.4 millionb in the first quarter. It has integratedc subsidiaries, shut down facilities, laid off workerse and sold property to try to cut costs andmaintain liquidity.
Early this year, Teamsters member agreed to a 10 perceny wage cut and suspensionof cost-of-living adjustments through 2013 in exchange for a 15 percent stake in the company. YRC also has been negotiatintg to defer union pension fund payments using company real estate as collateral and on June 18 secured an agreement with the largesr pension fund todefer $83 millio n in payments. The union has said it also is reachintg out tostakeholders — such as pension funda and YRC’s lenders — to address the cash YRC ranks No. 2 on the Kansas City BusinesesJournal ’s list of area public companies.

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