Transaction Boosts Company's Liquidity, Provides Path To Recovery
The plan to restructure YRC Worldwide Inc. aimed at saving more than 25,000 Teamster freight jobs has been successfully completed, Teamsters General President Jim Hoffa announced today.
“The completion of the restructuring is a significant accomplishment in our efforts to preserve good jobs,” Hoffa said. “Make no mistake, this transaction will help strengthen YRCW and most importantly, save more than 25,000 Teamsters’ jobs at the company.
“It has been a long, difficult road for our members at YRCW. Their significant sacrifices, support and hard work laid the foundation for the comprehensive restructuring that infused new capital, created additional liquidity, reduced debt and installed a new CEO and board. Because of the restructuring, YRCW will now have the cash to focus on operations and a new CEO and board to implement its operating plan. With these difficult three years behind us, we can look forward to a brighter future.”
The transaction provides a large boost in liquidity via a $100 million new money investment as well as expanded availability from the company’s asset-based lending facilities. It gives YRCW a runway to build on the positive momentum developed over the last six months. In addition to the financial benefits of the transaction, the company has appointed an entirely new board of directors, including two representatives nominated by the Teamsters. A new CEO, appointed by a committee led by the Teamsters National Freight Industry Negotiating Committee (TNFINC) and lenders, will also be joining YRCW.
“General President Hoffa and I are proud that this important transaction has closed and our members’ jobs and benefits will be protected,” said Tyson Johnson, Director of the Teamsters National Freight Division. “The Teamsters Union and its members look forward to being a part of YRCW’s future growth and success—both as owners and employees. Over the next several months, Teamster leaders and our board representatives will work with the new management team to help guide YRCW’s sustained success and build on this momentum.”
Also as part of the transaction, the Teamsters Union and TNFINC have negotiated a 25 percent ownership stake in YRCW for Teamster members.