An analyst said Wednesday that YRC Worldwide Inc., one of the nation's largest trucking companies, could file for bankruptcy and close its doors as early as this weekend despite its effort to complete a critical debt-to-exchange offer.
YRC, based in Overland Park, Kan., extended its offer to bondholders for the sixth time. It now expires midnight Wednesday. The offer is considered a last resort for the company because it will free up much-needed cash. But it would also make current shareholders' stakes virtually worthless.
The company said it made progress in its push to get debt holders to swap their bonds for equity, though it still doesn't have enough. And time is running out.
YRC needs to make a $19 million interest and fee payment on Thursday. It said earlier this month that if it didn't have access to some extra cash by Dec. 31, its "liquidity position would become unsustainable."
If YRC does not complete the bond exchange, the company's last chance to avoid bankruptcy is a waiver from its lenders, according to Stifel Nicolaus analyst David Ross. If that doesn't happen, the company could file bankruptcy and close its doors as early as this weekend, Ross predicts. Full Story.......