YRC Worldwide is really pushing its luck. Years without profits have put it perpetually on the brink of insolvency. Its high debt load makes it unattractive as a takeover target. Its creditors have little choice but to accept another restructuring deal that gives them the short end of the stick, unless one of them is willing to force YRCW out of business. A new deal will make YRCW extremely fragile if the expected dilution puts it at risk of delisting.
The end of April will reveal which creditors will feel the worst pain. Hey Teamsters, are your board reps ready to vote for a deal that gives you more concessions in exchange for future promises of diluted shares? That's the kind of representation your union dues have bought.
Full disclosure: No position in YRCW at all, ever.
The end of April will reveal which creditors will feel the worst pain. Hey Teamsters, are your board reps ready to vote for a deal that gives you more concessions in exchange for future promises of diluted shares? That's the kind of representation your union dues have bought.
Full disclosure: No position in YRCW at all, ever.
