Trucking company YRC Worldwide Inc. said Friday that it has made "significant progress" in negotiating agreements with lenders, its pension fund and the Teamsters union that are necessary to restructure its balance sheet by the end of July.
"We have been working closely with JP Morgan, agent for the senior secured lender group, the steering committee, the company's pension funds and the Teamsters National Freight Industry Negotiating Committee," said John Lamar, YRC's chief restructuring officer, in a statement. "We are very pleased with the progress that has been made and the support we have received."
YRC has teetered near bankruptcy after amassing huge debts and struggling with a downturn in the trucking industry during the recession. The company cut wages, sold real estate and delayed debt payments to avoid bankruptcy and in February reached a restructuring deal with its creditors and the Teamsters union that would give lenders the bulk of new shares and convertible debt.
Teamsters president Jim Hoffa said at the time that the agreement would save 25,000 jobs, give the union two seats on YRC's board and keep the company in business.