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* USA - TRUCKER YRC OFFERS TO AVOID BRANKRUPTCY
YRC offers fee to modify loan agreement
New York,NY,USA -Reuters, by Jacqueline Poh & Dena Aubin -Jan 23, 2009: -- YRC Worldwide Inc., North America's largest truck company, is offering a 75 basis point fee to lenders to relax key financial covenants on its $962 million loan, banking sources told Reuters Loan Pricing Corp on Friday... The borrower had asked for a waiver on Jan. 12, giving a 50 basis point fee, a rare offer for waiver requests, according to RLPC... YRC is asking for a waiver on some of its financial covenants that it has temporarily defaulted on and to extend its repayment of some loans... The possibility of amendments to relax financial covenants was one of the discussion topics, but sources said it appears there will be no major changes except for the definition of those covenants... YRC could be forced into bankruptcy if it fails to reach an agreement with lenders, misses those targets and defaults on its loans, Fitch Ratings warned earlier this month when it downgraded the company's ratings... YRC currently has over $250 million of cash and expects to generate additional cash from sale and leaseback transactions and from sales of excess facilities, while reducing its 2009 equipment purchases by integrating its national companies... Also previously announced, the company is integrating the operations and local sales teams of its two largest brands, Yellow Transportation and Roadway... (Photo USA Today: Keith Graham, a truck driver for a unit of America's biggest trucking firm, YRC Worldwide, loads a truck in Holland, Michigan September, 20, 2007. YRC says its business has been hurt by slowing economic growth, especially in the upper midwest because of the declining U.S. auto industry. Picture taken September 20, 2007.)
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