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  1. #1
    I Am Rocking Now

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    Jan 2008
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    new penn
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    Northeastern PA
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    Default Is YRCW's financing in place??

    InPlay from Briefing.com - Yahoo Finance

    10:00 am YRC Worldwide (+18%) spikes to 3 month high then pulls back following debt reduction news (YRCW) :
    YRC Worldwide Reaches Agreement to Reduce Debt by $300 Million - Yahoo Finance

    OVERLAND PARK, Kan., Dec. 23, 2013 (GLOBE NEWSWIRE) -- YRC Worldwide, Inc. (YRCW) announced today that it has reached an agreement with certain holders of its Series A Convertible Notes, Series B Convertible Notes and other institutional investors that will allow it to reduce debt by approximately $300 million. In doing so, the company will meet a primary requirement (retiring at least 90% of the company's Series A and B Convertible Notes) needed to satisfy the International Brotherhood of Teamsters' (IBT) conditionality of ratifying the Memorandum of Understanding (MOU) proposal that is currently out for ratification by the company's employees who are IBT members. However, the agreement will still remain contingent on getting the MOU proposal ratified by its members. The vote on the MOU is anticipated to be complete on January 8, 2014 and results will be available shortly thereafter. In addition, the debt reduction deal is contingent on getting holders of at least 90% of the $124 million of the company's pension fund debt to amend and extend the currently outstanding note.

  2. #2
    I Am Rocking Now

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    Retired ABF/Red Star
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    Default Re: Is YRCW's financing in place??

    In addition, the debt reduction deal is contingent on getting holders of at least 90% of the $124 million of the company's pension fund debt to amend and extend the currently outstanding note.
    Does anyone have any idea what this means? I don't get this. Who holds the notes on pension fund debt? If they borrowed against the pension debt then what did they do with the money? Unless maybe they wrote notes in lieu of payments to the actual funds. And now they want more credit from our pension funds.

  3. #3
    Team Trouble Outa KC

    Join Date
    Dec 2008
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    41
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    YRC Inc.
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    Overland Park KS
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    Default Re: Is YRCW's financing in place??

    Yep. They wrot notes the last few months before the pension funds threw them out. The are asking for more extensions on them. Was hoping they would use the money they were paying now and apply it to that debt but thier not that smart so central states is still laughing at them imagine getting million dollar checks weekly and being able to use it for whatever you feel like. The whole fund got holiday bonuses and the key admin made millions in performance pay for the year. All while we get nothing. Gota love america huh

  4. #4
    VOTE NO

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    Jun 2011
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    Default Re: Is YRCW's financing in place??

    From the 2013 Concession Proposal:

    9. Effective Date. If this Extension Agreement is submitted for secret ballot
    vote of all bargaining unit employees, it shall be put into effect if (a) 50% plus one of the
    bargaining unit employees voting, vote to adopt the Extension Agreement; (b) YRC
    Worldwide Inc. addresses at least 90% of the aggregate outstanding principal amount of
    the Series A Notes and Series B Notes (the “Series A and B Notes”) through any
    combination of the following options: (i) by converting to equity, (ii) by retiring through
    the proceeds of one or more equity offerings or (iii) by setting aside a sufficient amount
    of cash to redeem at maturity; (c) YRC Worldwide has made reasonable efforts to
    refinance both the existing Credit Agreement and Asset Based Loan facilities on terms
    that are better taken as a whole than are currently in existence; and (d) TNFINC shall be
    satisfied with the final terms and conditions of the provisions of the transactions
    contemplated in (b) and (c) above and the efforts with respect to (c) above and shall
    notify YRC Worldwide Inc. accordingly in writing. Such written notification of
    satisfaction shall not be unreasonably withheld. The Extension will be effective on the
    first day of the first payroll period commencing after the later of the date of ratification,
    the refinancing described in (b) and (c) above, and the written notification described in
    (d) above (the “Effective Date”).

  5. #5
    VOTE NO

    Join Date
    Jun 2011
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    404 NO
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    Default Re: Is YRCW's financing in place??

    The debt conversion announced today Dec, 23, 2013 satisfies the second (b) of the four things needed to ratify the 2013 Concession Proposal. A YES vote from Union members is first (a). The Series A and B notes are bonds that mature in Feb 2014 and require payment from the company to the bondholders at date of maturity. Company converted these bonds to avoid having to pay the bondholders cash instead issuing company stock to bondholders in amounts equal to par value of bonds. Third part (c) of Concession Proposal requirements is completely ambiguous by design and allows the company to get very creative to refinance the large amount of debt it is currently carrying. I predict the company will not move on this issue until after Jan. 8, 2014 when the votes are all counted. At that time (depending on outcome of vote) company will announce the refinancing terms it has already negotiated months ago yet cannot reveal due to effect it may have on company stock price. Yes these are my own words and I completely understand what Welch and the Board are up to. Mai Tai says VOTE NO BROTHERS
    Last edited by Mai Tai; 12-23-2013 at 06:00 PM.

  6. #6
    VOTE NO

    Join Date
    Jun 2011
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    404 NO
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    NP NO
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    NE NO
    Posts
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    Default Re: Is YRCW's financing in place??

    YRCW - Why YRC Worldwide Is Up Over 20% Today | InvestorPlace

    Read this article. My Local told me after initial meeting with company in Dallas that the company didn't have enough cash reserves to pay debt payment required in Feb. 2014 which is why we had to vote for concessions. That has all changed again, and company will only get stronger in future months EVEN WITH A NO VOTE!!!
    Last edited by Mai Tai; 12-23-2013 at 06:14 PM.

 

 

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