The largest U.S. less-than-truckload carrier, YRC is offering debt holders shares of the company in exchange for improved terms on its debt obligations which are coming due. It extended its debt-for-equity exchange after failing to meet the required threshold of bondholders to accept the deal.
The company, which also operates a logistics business, also said it was sweetening its offer. It said in a regulatory filing that it hopes to consummate all aspects of the deal by Dec. 31 to defer $19 million in interest and fees that would otherwise be due and maintain access to a $106 million revolver credit line.
It said its liquidity position would be 'unsustainable' it has to make the payment and loses access to credit reserves.