Handful of Bondholders Jeopardizing Tens of Thousands of Jobs
The Teamsters Union is calling on the small number of bondholders that are standing in the way of YRC Worldwide Inc.’s financial restructuring to take part in debt-to-equity exchange.
The union believes that hedge funds Brigade Capital Management and JMB Capital Partners, and banks including UBS, Barclays and TD Bank, hold positions and have not tendered. The union will protest Wednesday at the headquarters of Brigade Capital Management in New York to urge the hedge fund to exchange or sell.
“All bondholders need to recognize that the livelihoods of 30,000 Teamster members depend on their willingness to take part in the exchange,” said Teamsters General President Jim Hoffa. “The workers, the pension funds, the secured lenders, a majority of bondholders and other stakeholders have made sacrifices and contributed to the restructuring.”
“Now it is time for the remaining bondholders to recognize what is at stake and do their part. The company’s customers need to know there is a light at the end of this tunnel.”
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.
“It is unconscionable that these bondholders are playing chicken with tens of thousands of lives for minimal financial reward, either hoping for a better deal or they have derivative coverage,” said Teamsters Freight Division Director Tyson Johnson. “They need to recognize the sacrifices already made by these workers and the devastating affect a bankruptcy would have on their lives.”
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.
Teamster members and leaders will protest outside of Brigade Capital Management to send a message that the Union and its members pension funds – the source of capital for many of these institutions – will long remember if if they contribute to YRCW’s failure.
WHAT: Teamsters Hold Protest at Brigade Capital Management
Brigade Capital Management
399 Park Avenue, Suite 1600
New York, New York 10022
WHEN: Wednesday, December 30, 2009
11:30 a.m. - 1 p.m.