Saturday, April 07, 2012

YRC Chief Welch Says Trucker Can Service Debt as Swaps Rise

YRC Worldwide Inc., the trucker whose credit-default swaps surged as bondholders guard against losses, said it can service its debt as long as business continues improving.

“Our customers are telling us a different side of the story versus what some of the analysts may say, or some of these CDS folks,” Chief Executive Officer James Welch said in an interview. “Our business is growing. We’ve had double-digit growth.”

YRC has won some new customers after losing market share during a 2009 restructuring that helped prevent bankruptcy, Welch said in an interview with Kathleen Hays and Vonnie Quinn on “The Hays Advantage.”

Revenue climbed 12 percent last year after falling every year since 2006 as the money-losing trucker struggled to integrate companies it purchased in 2003 and 2005.

Credit-default swaps tied to the Overland Park, Kansas- based company surged to the highest since October 2009 this week before paring some of the gains. Yesterday’s price implies a 91 percent chance of default, according to data provider CMA.  Full Story............

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