YRC Worldwide Inc. [NASDAQ: YRCW] announced that it reached the necessary thresholds on its bondholder debt-to-equity exchange offer that concluded today.
The successful exchange is the final piece of a comprehensive restructuring plan that required all key stakeholders – YRCW’s Teamsters and non-union workers, pension funds, secured lenders, and bondholders – to contribute to helping the company weather the worst freight recession in generations.
“Our members have made tremendous sacrifices in leading the way to make this restructuring possible,” said Teamsters General President Jim Hoffa. “Given the circumstances, this is as good of news that we could have hoped for. Today’s announcement that YRCW’s bondholders have agreed to eliminate a significant amount of debt paves the way for the company to re-establish its customer base in the less-than-truckload (LTL) market.”
The successful bond exchange is the culmination of a complex restructuring program in which the Teamsters Union played a leading role over the past 14 months. The Teamsters Union and YRCW reached a labor cost savings agreement in August, and then YRCW reached new terms with its bank lenders at the end of October. Now the bond exchange has successfully concluded.
“Not only did our members do what was necessary to help YRCW, but the Teamsters Union, under the leadership of General President Jim Hoffa, used all its resources to convince the banks and bondholder’s that they too needed to step up and do their part,” said Tyson Johnson, National Freight Director. "Hoffa's ability to influence actors both behind the scenes and in public made this deal possible.
“All the sacrifices and hard work have paid off with additional liquidity and nearly $500 million of debt off the books. YRCW can now focus on delivering excellent service and winning back customers who were concerned about the company’s financial condition.”
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.