Friday, April 20, 2012

YRC appeals to lenders for leniency

YRC Worldwide Inc. is pursuing leniency from its lenders, a move that comes after warnings that its recovery wasn’t advancing fast enough to meet minimum requirements.

The Overland Park-based trucking company explained its request in a Friday filing with the Securities and Exchange Commission.

Specifically, it wants to reset covenants from a July 2011 credit agreement that govern minimum consolidated earnings before interest, taxes, depreciation and amortization; maximum total leverage ratio; and minimum interest coverage ratio.

Bankers set the requirements as part of YRC’s restructured financing, which the company pursued after the recession and heavy debt pushed it onto hard financial times, at one point near bankruptcy.  Full Story.........

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