The International Brotherhood of Teamsters has officially given its blessing to an asset-based lending (ABL) agreement for YRC Worldwide, which will provide part of the necessary ongoing operational funding for the struggling carrier.
“The approval of this facility is another important step in the restructuring process which we are pleased to have completed. We now are nearing the finish line on this important transaction that will help save 25,000 Teamster jobs at YRC," said James P. Hoffa, the Teamster’s general president in a statement.
“We are encouraged by the continued support of the company's existing lender group and advisors to help push towards closing the transaction and maintain the positive momentum that YRCW and its employees have worked for over the last two years,” he added.
The agreement to back the lending deal – hammered out between YRC and the Teamsters National Freight Industry Negotiating Committee (TNFINC) – allowed the carrier to file an amended Form S-1 with the Securities and Exchange Commission (SEC) and gives it access to $100 million in new capital funding while reducing debt.
Pending continued review and support of negotiations and documentation, the union said the transaction remains on track to close no later than July 22, said Tyson Johnson, international vp and director of the Teamsters National Freight Division. “We will continue to work with our freight members to help push the restructuring to close,” he added.
