Wednesday, December 22, 2010

Tom Gerke to Join YRC Worldwide as Executive Vice President, General Counsel and Secretary

YRC Worldwide Inc. has announced that Tom Gerke is joining the company as executive vice president and general counsel effective Jan. 3. He also will serve as secretary to the YRC Worldwide board of directors.

"Tom is uniquely positioned to lead our legal organization as we work on our comprehensive recovery plan," says Bill Zollars, chairman, president and CEO-YRC Worldwide. "We are really pleased to have Tom joining us and look forward to him being a key contributor on our leadership team as we continue our progress."

"YRC Worldwide brands are true industry leaders, and I am impressed at what the company has accomplished to weather the economic downturn while preparing for the future," says Gerke. "I am excited to be part of the team working to continue the company's progress."

Gerke has extensive experience with Fortune 500 companies in leadership roles. He has most recently served as executive vice chairman at CenturyLink. Previously, he was president and CEO of Embarq Corporation, and prior to Embarq, Gerke held a number of senior executive leadership roles at Sprint Nextel Corporation including serving as general counsel.

Prior to that, he spent nine years in private practice. Gerke's extensive legal experience includes regulatory, external affairs and support for boards of directors. He received his Juris Doctor from the University of Missouri School of Law and a Master of Business Administration from Rockhurst University. Gerke is a board member of the Kansas City Local Investment Commission and serves on the Rockhurst University Board of Trustees.


General Secretary-Treasurer Tom Keegel and I extend our best wishes for a happy holiday season to our Teamster brothers and sisters and all their families. You deserve it after working so hard in 2010 to keep our union strong and united during these tough economic times. We are confident that the New Year has great things in store for all of us.

As we close out 2010, we look back with pride on what we have accomplished. We have had great Teamster organizing victories at Continental Airlines, KAG West, CVS, Pasco County in Florida, just to name a few. Our extremely successful school bus campaign continues to rack up victories.

But we suffered a tremendous loss on Aug. 3, when eight innocent people were gunned down in the warehouse of a beer distributorship. Seven of those killed were Teamsters, members of Local 1035 in South Windsor, Conn. Almost all of the victims were nearing retirement after a lifetime of hard work. We have these fallen brothers and their families in our hearts this season.

We are proud of how our union came together to help out the families, friends and co-workers of the slain Local 1035 members.

Our union is great because of you. For your dedication to our union, we are eternally grateful.

May this holiday season bring you great happiness and peace. And let’s look forward to making 2011 our best year yet!

In solidarity,

James P. Hoffa, General President

YRC Worldwide Continues Progress on Comprehensive Plan

Expected Fourth Quarter 2010 Adjusted EBITDA In Excess of Covenant Level

Credit Agreement and ABS Lenders Extend Interest and Fee Deferral to May 2011

Key Stakeholders in Discussions to Complete Comprehensive Plan by Mid-2011

YRC Worldwide Inc. today announced amendments to its credit agreement and asset-backed securitization facility ('ABS'). Both amendments are intended to provide additional time for the company and its key stakeholders to finalize plans to recapitalize the company's balance sheet, including working with its lenders and the Teamster negotiating committee for the International Brotherhood of Teamsters ('TNFINC').

"We appreciate the continued support of all our stakeholders as we work to finalize our comprehensive recovery plan," said Sheila Taylor, Executive Vice President and CFO of YRC Worldwide. "These amendments are another indication of the positive dialogue with our lenders and their further interest in a long-term solution for the company."

The amended credit facilities extend the deferral of credit agreement interest and fees through mid-May 2011 and interest and fees under the ABS facility through May 31, 2011. The amendment requires the company to reach an agreement in principal to recapitalize its balance sheet by February 28, 2011, complete final documentation by March 15, 2011 and close by May 13, 2011.

The effectiveness of the credit agreement and ABS facility amendments is subject to the consent of TNFINC and agreement by a supermajority of the multi-employer pension funds who are party to the company's contribution deferral agreement to an extension of the deferral of interest and principal payments under that agreement through May 31, 2011.

In addition, the amendments establish the company's 2011 financial covenants in conjunction with the company's finalization of its 2011 financial forecast. For the four quarters ending March 31, 2011, the company's adjusted earnings before interest, taxes, depreciation and amortization ('adjusted EBITDA') covenant is $140 million and its minimum available cash covenant will remain at $25 million. The remaining adjusted EBITDA and capital expenditure covenants and other details can be found in the current report Form 8-K filed today with the Securities and Exchange Commission.

YRC granted extensions on two lending arrangements

YRC Worldwide Inc. said Tuesday it received extensions on two lending agreements, allowing it to continue working on its restructuring plan through mid-2011.

The Overland Park-based trucking company said it received amendments on its credit agreement and asset-backed securitization program, extending deferrals on interest and fees though next May. The extension requires that YRC reach an agreement in principle to recapitalize its balance sheet by Feb. 28 and close that deal by May 13. Full Story...