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TRUCKING TROUBLES * USA - Goldman Sachs Driving YRC Trucking Into Bankruptcy, Hoffa Says
New York,NY,USA -Bloomberg/The Huffington Post -Dec. 17, 2009: -- International Brotherhood of Teamsters President, James Hoffa, said Goldman Sachs Group Inc. is creating derivatives trades that would benefit from the bankruptcy of YRC Worldwide Inc., the trucking company trying to avert failure with a debt exchange... The most profitable securities firm in Wall Street history "is actively soliciting bond trades for clients and underwriting credit-default swaps to benefit from a failed exchange and resulting bankruptcy," Hoffa, the union leader, wrote in a letter dated yesterday to Goldman Sachs Chief Executive Officer Lloyd Blankfein...* YRC Has Until Yearend to Corral Bondholders, Avert Bankruptcy
New York,NY,USA -Bloomberg, By Shannon D. Harrington & Pierre Paulden -Dec. 18, 2009: -- YRC Worldwide Inc. has less than two weeks to persuade bondholders to accept a debt exchange and prevent a bankruptcy filing that its employees’ union says may force the biggest U.S. trucking company to liquidate... YRC, which has pushed back the deadline for the swap three times this month, must complete the tender by Dec. 31 to avoid a $19 million payment of interest and fees that would leave the trucker in an “unsustainable” position, the Overland Park, Kansas-based company said yesterday in a regulatory filing... Goldman Sachs is trying to repay $10 billion in federal aid it received from the Troubled Asset Relief Program in order to get out from under restrictions President Obama placed on banks receiving TARP funds...
* ANALYSIS - Trucker YRC's struggles mount, rivals set to gain
Overland Park,KN,USA -Reuter/Forbes, by Carey Gillams & Andre Grenon -18 Dec 2009: -- The countdown is on for troubled U.S. trucking giant YRC Worldwide Inc... Industry players doubt it can complete a complicated bond exchange and restructuring, and attention is now turning to how a YRC failure could boost rival trucking companies... The pessimistic view followed word from YRC Thursday that it was falling far short of needed bondholder approval for a $537.8 million debt-to-equity exchange that is the foundation of a financial restructuring essential for YRC's survival... The company acknowledged Thursday it might have only days left before its liquidity becomes "unsustainable." It said it must convince bondholders to swap debt for equity by Dec. 31 to avoid a $19 million payment of interest and fees it cannot meet... The company has said the exchange offer is crucial. Following its completion, the lenders have agreed to defer nearly all of interest and fees, which are about $25 million per quarter, and allow the company access to an existing $106 million revolver reserve...
* ANALYSIS - YRCW Worthless, Credit Suisse Says
New York,NY,USA -Barrons, by Tiernan Ray -December 18, 2009: -- Credit Suisse analyst Christopher Ceraso, this morning writes of trucker YRC Global that the question is less whether the firm goes bankrupt but how... It is not a foregone conclusion that YRC’s assets will be liquidated if it does go bankrupt, writes Ceraso. In fact, the company’s likely to keep its assets and keep operating right through a bankruptcy filing... It’s most likely YRC fails to consummate its proposed debt-for-equity swap, he believes. However, if two-thirds of the company’s secured lenders approve the exchange, and even a modest number of unsecured creditors buy in, a pre-packaged bankruptcy could be rushed through the courts. In the first scenario, YRC’s offer fails, the stock is worth at most 30 cents; in the case the swap succeeds, the stock is worth zero...
Labels: trucking troubles USA
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