Fiscally-troubled YRC Worldwide said its completed several more agreements with key stakeholders providing for their support of a comprehensive restructuring plan to be finalized in July.
John Lamar, chief restructuring officer and lead director of YRC Worldwide, said in a statement that more than 95% of the senior secured lenders have now approved the company’s restructuring documentation, as have 100% of the company's multi-employer pension funds, along with the International Brotherhood of Teamsters, and 100% of the lenders under the company's asset-backed securitization (ABS) facility.
"When we announced the non-binding agreement in principle in February, we noted that our primary objective was to achieve a comprehensive restructuring with a solid foundation for long-term success," he said. "With these agreements, we believe that foundation is now in place, and we remain on target to close the restructuring in July."
YRC’s restructuring plan anticipates an infusion of $100 million in new capital, as well as increased liquidity from a new asset-based loan (ABL) facility that would replace the current ABS loan. The plan also calls for exchanging a portion of the company's existing loans and other obligations for new securities, including the exchange of some obligations for equity.
This is expected to be accomplished by a series of transactions to be completed in July, and would result in the company's existing shareholders holding approximately 2.5% of the company's outstanding common stock, subject to further dilution by a management incentive plan and the conversion of certain new securities, Lamar noted.
"With our stakeholders having shown their confidence in the company by executing these definitive agreements we look forward to completing the restructuring as we have previously announced,” he said.
