Wednesday, January 06, 2010

Arkansas Best officials not focused on YRC troubles

While the bankruptcy of national trucking giant YRC would boost the fortunes of Fort Smith-based Arkansas Best Corp., officials with the Fort Smith trucking company aren’t pinning their hopes on a YRC stumble.

Overland Park, Kan.-based YRC in the past few days avoided bankruptcy through a complex bond swap agreement with creditors. The deal essentially reduced the company’s debt by about $500 million and provided short-term support for working capital.

The less-than-truckload company had piled up a mountain of debt with the $1.07 billion acquisition of Roadway Corp. and the $1.23 billion acquisition of USF Corp. in 2005. The timing of the debt was terrible. A national freight recession began in October 2006 and continues today. As a result, YRC has posted $1.7 billion in losses in the past five quarters. For some perspective on the size of YRC and its troubles, Arkansas Best, the parent company of ABF Freight System, has lost $50.17 million in the past four quarters. Full Story.......

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