Thursday, April 26, 2012

YRC Creeps Quietly Out of China

The tide has certainly changed in a few short years. The Fortune-500 company is now staving off bankruptcy, its stock floundering about in the single digits on the NASDAQ from a 52-week high of $618.06 in April 2011. A net loss of $409 million was posted last year, on revenues of $4.9 billion. YRC is not going down without a fight though, as it turned to its creditors in mid-April to renegotiate the terms of a 2011 loan agreement. According to the Kansas City Business Journal, YRC’s lenders may require the once US$9.9 billion firm to repay its loan faster, likely necessitating asset seizures.

Though with a new CEO in place since July last year – trucking industry vet James Welch – the ailing firm does not have much left in the way of assets to be seized, should its lenders call in its debts. YRC let go of a number of assets in a purported “streamlining” strategy, initiated by Welch. YRC Worldwide has sold off its 65 percent stake in Jiayu Logistics, its JV in China, as well its entire logistics division, contract carriage business, and its truckload unit (Glen Moore). Not much else remains, aside from its North American longhaul less-than-truckload business, YRC Freight.  Full Story.......

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