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  1. #1
    Resistance is futile.

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    Default YRC Worldwide increases debt-buyback offer to $150M

    Wednesday, December 10, 2008 - 4:26 PM CST
    YRC Worldwide increases debt-buyback offer to $150MSt. Louis Business Journal

    YRC Worldwide Inc. has increased its offer to buy back senior debt to as much as $150 million, up from a previous cap of $100 million.
    YRC Worldwide increases debt-buyback offer to $150M - St. Louis Business Journal:

  2. #2
    Getting In The Groove Now.

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    Default Re: YRC Worldwide increases debt-buyback offer to $150M

    man i like these press releases but what does all this mean? does anyone know? if you guys could help me out maybe i would be able to better understand this situation.

  3. #3
    I call it like I see it!

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    Question Re: YRC Worldwide increases debt-buyback offer to $150M

    Quote Originally Posted by winkjr View Post
    man i like these press releases but what does all this mean? does anyone know? if you guys could help me out maybe i would be able to better understand this situation.


    It's kinda like this winkjr....lets say your in hock up to your ears and you owe $20,000.00 ....you offer the folks you owe the money to $15,000.00 to clear the books & get you off the hot seat. (I believe YRC wants to take the 150 million & pay off 230 million in debt) They can accept it & take a 5 grand loss....or not & lose the whole 20 grand. It's not exactly that way but kinda...You with me???

    Mark
    Last edited by MarkUPGF; 12-11-2008 at 12:58 PM.

  4. #4
    Moving the Nations Freight

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    Default Re: YRC Worldwide increases debt-buyback offer to $150M

    I am by no means a financial genius but I'll add my 2 cents as I understand the issue.

    I think MarkYRC is exactly right. YRC is now offering 150 million to buy back debt that they originally offered 100 million for. My guess is that the lenders were not receptive to their original offer so YRC "sweetened the pot"

    I like the fact that they are trying to pay off debt for a lot less than they owe but I am somewhat concerned that they had to up the offer. I don't know if this means the lenders were not receptive to YRC's first offer or if this is just part of the negotiating process.

    If anyone else can add to what I've said or correct me if I'm wrong please feel free to do so.

  5. #5
    Getting In The Groove Now.

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    Default Re: YRC Worldwide increases debt-buyback offer to $150M

    i got you mark. but why would a company who loaned you 230 million take 150 million for it. im not a financial whiz but that doesnt seem like a very good deal.

  6. #6
    Moving the Nations Freight

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    Default Re: YRC Worldwide increases debt-buyback offer to $150M

    Quote Originally Posted by winkjr View Post
    i got you mark. but why would a company who loaned you 230 million take 150 million for it. im not a financial whiz but that doesnt seem like a very good deal.
    Because if the whole thing goes south they may only get pennies on the dollar.

  7. #7
    I Am Rocking Now

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    Default Re: YRC Worldwide increases debt-buyback offer to $150M

    Also these debts may not be due for some time to come and at the due date already agreed upon YRC would owe say 200 million and they are saying if you let us out of the agreement we will pay you X amount of dollars now. In other words they are trying to renege on another contract they entered into. YOUR BROTHER ALWAYS.

  8. #8
    LOAD AND PARK CHARLIE
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    Default Re: YRC Worldwide increases debt-buyback offer to $150M

    That is exactly right. They are offering the debt holders a reduced repayment amount. A settlement amount. And paying a reduced amount will not have a great result on their credit rating either. But it will reduce their outstanding debt.

    This company is pulling out all the stops, and is trying to default where ever they can, to get out from under. And it will not stop with these propossed concessions. Corporate scumbags follow the path of least resistance.

    Holiday pay, sick days, pension, health care, all will be fair game in a short time. Don't think for a minute they wont go for the kill. And lets not forget about a reduction in the overall labor force.

    My job is tied directly to the Automotive companies, with the demands being placed on the big three, to cut labor costs, and restructure their debt. You can be assured they will be coming after our carhaul companies, for relief. And like I voted back in the summer, I will never agree to any concessions. I do my job, they should start doing theirs...

    There is a point, where you must have courage. For courage never tested is just threats. I wish all concerned in this freight turmoil, all the best.

 

 

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