Saturday, December 19, 2009

Teamsters plead YRC’s case to reticent bondholders

YRC Worldwide Inc.’s union, whose members have forfeited about $2 billion in compensation to help keep the company afloat, is trying to persuade reticent bondholders to agree to a debt-for-equity swap that’s key in helping YRC avoid bankruptcy.

The head of the International Brotherhood of Teamsters, which has about 40,000 workers employed by YRC, on Wednesday sent a letter to the CEO of financial services bigwig The Goldman Sachs Group Inc., Iain Gold, the Teamsters’ director of strategic research, said Thursday. In it, he said, Teamsters General President Jimmy Hoffa asked whether Goldman Sachs was gambling that it could make more money through credit-default swaps than by participating in the debt-for-equity exchange. The exchange would wipe out a chunk of YRC’s debt and put bondholders in control of most of YRC’s common shares.

Full Story........

No comments: