Subscribe to our free, weekly email newsletter!


LTL news: YRCW completes its long-awaited financial restructuring

By Staff
September 19, 2011

The financial restructuring of less-than-truckload services provider YRC Worldwide (YRCW)  appears to be complete based on news late last week noting that company shareholders unanimously voted to have YRCW common stock diluted, according to media reports.

This news follows a $500 million restructuring announced in July, which included a new $400 million lending agreement.

Before the restructuring, YRCW had 48 million outstanding shares. After the restructuring, it has 1.9 billion shares, meaning former shareholders will own just 2.5 percent of YRC. The other 97.5 percent is now owned by new shareholders comprised of lenders, bondholders, and labor union members, according to Reuters.

  The restructuring included a radical 1-9 reverse stock split which means a new set of shareholders will own the company, with former shareholders’ value sharply diluted. Existing stockholders will now own just 2.5 percent of the company under this new deal.

In the second quarter of this year, YRCW reported a net loss of $39 million on $1.257 billion revenue, compared to a net loss of $10 million on $1.119 billion revenue in the second quarter of 2010, which included an $83 million after-tax benefit.

Following this news on Friday, shares of YRCW dropped nearly 70 percent to 10 cents per share.

With this restructuring now complete, YRCW is focused on the future and regaining market share it has lost over the last four years.

CEO James Welch, whom replaced Bill Zollars earlier this year, told the Kansas City Star that over the last eight weeks the company’s on-time delivery rates have increased to 94 percent from 88 percent.

When the restructuring was first announced in July, YRCW officials said it would enhance the company’s liquidity and provide a “runway for the continued growth in revenues and earnings.”

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

83% of surveyed manufacturers either already have IoT implementations in place or plans to deploy within a year.

While the Port of Oakland agrees that Saturday gate operations might ease congestion, they have a few "concerns" of their own

The four international marine container terminals at the Port of Oakland have announced they are developing a program to operate their terminal gates on Saturdays to reduce weekday congestion at the port.

Private fleet managers are facing a remarkable set of challenges in today's demanding business environment. The "from any place at any time" omni-channel fulfillment mindset is just one significant development that companies have had to adapt to in their quest to keep customers and business partners happy.

This is the first guaranteed weekly service direct to the U.S. from Singapore as part of the company’s initiative to enhance its LCL offerings serving Trans-pacific needs.

Article Topics

News · YRC Worldwide · LTL · YRC · Less-Than-Truckload · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA