Union Promises to Monitor, Pressure Bondholders to Protect 30,000 Jobs
The Teamsters Union announced that it will postpone a protest planned today at the headquarters of Brigade Capital Management in New York after conversations with Brigade that the hedge fund does not currently own any YRC Worldwide Inc. bonds. In addition, UBS has indicated they have tendered their bonds in the exchange.
The Teamsters will continue to monitor the situation and will plan future protests at these institutions and others if contrary evidence surfaces. All bondholders need to understand what is at risk if they do not participate in YRCW's debt exchange. The company has extended the bond exchange deadline to 11 p.m. EST Dec. 30.
"There is too much at risk for bondholders to sacrifice the livelihood of 30,000 workers for the marginal profits they might realize by their continued inaction," said Teamsters General President Jim Hoffa. "It's a simple choice -- help a good, U.S. company recover and protect 30,000 jobs or allow our struggling economy to take another devastating hit. I think the choice is clear -- bondholders must now do their part."
Bondholders have two ways to be helpful -- take part in the exchange or sell to someone that will. There are existing bondholders that are willing to purchase these bonds.
Last week, the Teamsters Union also called upon the Securities and Exchange Commission, state attorneys general, state insurance commissioners and congressional oversight leaders to investigate the activities of bondholders and traders involved in this exchange.