News and Views for Freight Teamsters
Monday, April 30, 2012
YRC Worldwide gets wiggle room from lenders
YRC Worldwide Inc. says its lenders have agreed to reset covenants from a July 2011 credit agreement, staving off the latest concern about the trucker’s financial future.
In a Monday release, the Overland Park-based company said all of its term credit agreement lenders and credit agreement lenders for asset-backed loans agreed to the amendments.
In addition to resetting the loan terms, the lenders will allow YRC to retain all proceeds from the auction of certain surplus property.
If YRC had not been able to secure the changes, its lenders could have forced the company to repay its loans immediately, which the company said it didn’t have the cash to do.
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