YRC Worldwide (NASDAQ: YRCW) announced it expects to receive a $700 million loan from the United States Department of the Treasury under the CARES Act.
The less-than-truckload (LTL) carrier has been facing mounting financial pressure amid the pandemic to fund obligations to its 30,000 employees. The company is delinquent in making health and welfare as well as pension payments to funds that support its union and non-union employees.
The press release said the company plans to use the money to make the deferred benefits payments to satisfy their obligations.
“We would like to thank Congress for passing the CARES Act and the U.S. Department of the Treasury for providing this vital funding which recognizes the essential role YRCW plays in the nation’s supply chain. Through our work with over 200,000 customers, including being a leading transportation provider for the Departments of Defense, Energy, Homeland Security, and Customs and Border Protection, YRCW’s freight professionals have developed a deep understanding of, and expertise in, the importance of a secure and reliable supply chain,” said YRC CEO Darren Hawkins.
Brett
That’s twice as much as everyone than those $1200 checks everyone got
Pete Ross
Kiss that those millions good bye.
Johnny
If YRC was managed well in the first place, they wouldn’t need a bailout. Another case of Corporate America & government over reaching at it’s best.
Bob the Builder
ABF and Old Dominion need to gear up and be ready.
Billy
At least their loaning it to working people rather than handing it to lazy welfare bums.
Phil P.
Wrong! Ask the drivers how long it’s been since they have seen a raise at YRCW. Years! The money will go to pay off bankers and creditors and the workers will get crumbs! Let these mismanaged companies fail and watch what happens to the rates and driver’s pay! More demand means more money! Economics are not a strong suit of the Board of Directors at YRCW. They did however give themselves bonuses last year while they missed medical insurance payments for their employees!
Former Trucker
Loaning it to working people? You think the money is going to truck drivers and dock workers? What are you drinking? YRC has been on the ropes for over 10 years. And, in most of those years, they barely made any money (if any at all).
Why not let the “Free” Market work? Let losers like YRC go out of business and the other LTL carriers will fill the void.
If YRC is essential to America’s National Security, America is in big trouble!
Johnny
Go to yrc they’re hiring 😂
Phil P.
WTF! Why is the government taking ownership in any company? Smells like Venezuela to me. Now YRCW stock is on fire, but is still managed by the same morons that drove it to the edge of bankruptcy. There are enough LTL companies that could have absorbed the business and drivers to make the death of YRC painless. If the government starts buying companies like this, the working people are doomed. The government just snatched 3 dollars out of your pocket and have no intention of returning the money back.