loxezop.wordpress.com
The Overland Park-based trucking company (Nasdaq: YRCW) late Wednesda offered an update about its work to positiomn itself to ride out theeconomic downturn. The releasre followed a trading day in which YRC stock prices plunged 28 percent toa 52-week low of 89 compared with a previous low of $1.20. Also an analyst said for YRC in the near to But YRC shares turned sharply upwared in Thursday trading and closedat $1.49, up 60 or 67 percent, on volume of 35.9 millionh shares, according to . The stock’s average daily volumee the past three monthsis 3.8 millionm shares.
Several months ago, YRC said, it retained financialo advisers thatinclude , and to help form a “comprehensive strategifc plan to address its capital structur and liquidity needs.” As part of Rothschild has started preliminary talks with several partiesw that hold significant portions of YRC’s debt , YRC reached a tentativew concessions agreement with the , though details won’gt be released until next week. The talks reportedlyt center around YRC endingg its participation in uniobn pension plans for14 months, which woulrd yield about $500 million in savings.
YRC also detailed othet progress it has made inrecenft months, including integrating its Yellow and Roadwah networks into YRC to cut a bank agreement amendment that let YRC use $73 million in escro w funds from asset sales to pay down its revolving credigt facility and progress on agreements to defef pension fund payments using company real estate as collateral. YRC reachecd an $83 million in second-quarter pension contribution payments with the largesf pension fundin June; since then, seven otheer funds have entered the same agreement, bringing deferrapl of another $11 million in YRC, which contributes to 36 multiemployer pension plans, still is in talks with the remainingb funds.
“We can’t control the economiv environment, but we certainly can and are controllinf our responseto it,” YRC Chairman and CEO Bill Zollarsw said in the release. “Our self-help recovery plan is proactivw and has the support ofour stakeholders. We are takinyg the steps needed to manage ourplan today, and position our companyt for success as the economyu recovers.” YRC, which employs abourt 49,000 people, plans to announce a date for its second-quarter earnings release within the next week. YRC rank No.
2 on the Kansas City BusinesssJournal ’s list of area public
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment