Major trucking-shipping-commerce bankruptcy looms in 2 days.............or tonight

[underpants]

on edit-this is Yellow RoadWay trucking

YRC again extends equity offer, Teamsters cry foul

http://money.cnn.com/news/newsfeeds/articles/reuters/MTFH26900_2009-12-29_23-33-01_N29151712.htm

OVERLAND PARK, Kan. (Reuters) - Troubled U.S. trucker YRC Worldwide said it was again extending a crucial debt-for-equity offer that it needs to stay afloat as it worked to convince bondholders to participate.

YRC said 81 percent of the company's outstanding notes, which total $536.8 million, had been tendered in the proposed exchange for equity, up from about 80 percent a week ago, but still well below a needed threshold.

The offer had been set to expire late Monday night, but YRC officials extended the offer until 11:59 p.m. EST on Dec. 29 , the fifth such deadline set for the exchange offer over the last few weeks.

YRC, which is the largest U.S. trucking company handling smaller, or less-than-truckload shipments, is struggling to stay out of bankruptcy and has hinged its hopes on a financial restructuring based on the debt-for-equity swap.

As part of the restructuring, YRC plans to issue up to 42 million shares of common stock and 5 million shares of Class A convertible preferred stock, giving noteholders 95 percent of the company's common stock.

The company has said the debt exchange is key to maintaining leniency from lenders, and warned its liquidity position could become unsustainable by the end of this week if it has to make a $19 million payment due on Jan. 1, 2010.

[proud2BlibKansan]

1. That's right here where I live

I used to know the family who owned or ran this company but I think they sold it years ago.

This will be a significant blow to the local economy.

[littlebit]

2. Some of us in the trucking industry have been

watching this for a while. It's just a matter of time before they fold. Freight rates and volume are way down from last year. I don't see them being able to continue.

[proud2BlibKansan]

3. Son works in local freight yard

He mentioned this the other day. It will be a big blow.

[littlebit]

6. It will definitely

be a big blow. The drivers that work there are some of the best paid in the industry. The problem is there just isn't a big demand for LTL carriers right now.

[phaseolus]

7. Back in '87-88...

...when part of my job involved loading & unloading the trucks that came in 2nd shift, I hated the Yellow trailers. Every one of them had big gaping holes in the bed. I didn't feel real safe driving a fork truck in & out of them.

This didn't seem to be an issue with any other carrier. Either they were just around for a long long time, or couldn't afford to maintain their equipment, or both.

[Skink]

8. Then good riddence. Unsafe conditions should be condemned.

[underpants]

14. I operated a fork lift at two jobs

framing orders at a lumber yard (HARD work)
and LTL at CSX (great college job)-I wouldn't have liked driving into a trailer like that either...yikes

[underpants]

15. Someone close to me has been watching this for a while too

the other carriers are making plans to absorb as much as possible.

From what I hear they will have most of it covered but there will be trucks on the side of the road as they say-and that is not good economically.

:shrug: bigger have fallen but this is not a good time for this to happen

[Ikonoklast]

4. YRC made some pricey acquisitions at the very top of the market.

I wonder if they forgot to pay attention to the cyclical nature of the shipping business.

The slowest quarter of the shipping year is coming up right now. They will be hard-pressed to survive another entire quarter of nothing but operating losses.

[underpants]

16. Expand expand expand

assets assets assets

Assets are great but revenue is better but that is not how upper management has convinced itself that accounting works (and I have an accounting degree)

[L0oniX]

5. Hey ...you don't plan on flying anytime soon do ya ...with that nickname?

Sorry ...I just had to point that out.

:evilgrin:

[eilen]

9. I believe it is Goldman Sachs closing them down nt.

[demosincebirth]

10. I worked there for forty years...great company, but lousy CEO. He bit off more than...

than he/Yellow, could chew with the acquisition of Roadway.

[Quantess]

11. I did not know about this.

K & R

[TroubleMan]

12. Yellow damages our inbound freight so much that we hate it when the factories use them.

A lot of big factories use them, because they usually have the bargain basement rate, though.


There's also a current class action lawsuit about them concerning pension plans:

http://www.lawyersandsettlements.com/case/yellow-freight-pension-plan-ERISA.html

[Edweird]

13. It's the snowballing of our crappy economy.