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............

1 comment:

Anonymous said...

From a vendor stand point this company will not make it. They are betting for an economic turn around and cheaper fuel. They have started to pay vendors slower and slower In essence making them carry their cost. And all the while falling farther in the hole. I've never been big on unions but this company is robbing the pension benifits and they cannot make their credit repayment terms sooner or later they will be put in cod like I was forced to do. Infact I had to hold trucks to get payment. By every indication they are looking like bankruptcy is in near future. I feel for many jobs and family's this is going to affect and already has. I see high end executives taking big wages and having their wages put in escrow to insure they get paid. Too bad not that much concern to take a big pay cut. Or concern for vendor or blue collar worker or bottom end management. What is new with big business though