YRC announces restructuring deal
Trucking company YRC Worldwide Inc. said Friday it has entered into definitive agreements with the Teamsters union, multiemployer pension funds and 95 percent of its senior secured lenders on a restructuring plan.
YRC had announced a non-binding agreement in February with stakeholders. John Lamar, chief restructuring officer and lead director of YRC Worldwide, said Friday: “With these agreements, we believe that foundation is now in place, and we remain on target to close the restructuring in July.”
The company said the restructuring plan anticipates an infusion of $100 million in new capital, as well as increased liquidity from a new asset-based loan.
Under the restructuring, lenders will receive convertible preferred stock equal to 72.5 percent of the restructured company’s outstanding common stock, and another 25 percent stake will go to a trust or plan for company employees represented by the Teamsters.
Existing shareholders will see their ownership in YRC fall to about a 2.5 percent stake after the restructuring.