Economic recovery? Don’t ask YRC….
Ouch – is the economy really in full recovery?
Transportation providers are typically a bellwether of the economy, due to the role they play in moving goods across our nation. News yesterday from YRC (Yellow Roadway Corporation) casts doubt that a full recovery is really underway.
YRC shares fell 29%, due to a debt for equity swap that increases the number of outstanding shares by more than 2 billion. In exchange, investors will provide YRC with $70 million in new liquidity. Once the swap is complete, bondholders holding more than $470 million in YRC debt will control 94% of the company.
The hope is that these moves will keep the company solvent as it continues to seek further financing. We can only hope.
Economic recovery? Maybe if you ask the our President – just don’t ask YRC!
Jim L. February 22nd
It’s important to the industry that YRC stick around – in fact the US Government should have handed them a few billion like they did to their banking buddies.
Great article
About Author
Dave Mallett
Dave is an expert in helping customers Ship Better and Save money. In his twenty years in the industry he has facilitated hundreds of customers reducing transportation costs and improving efficiencies.