One more time -
12/30/2009- YRC Worldwide (NASDAQ:YRCW) said it is still short of the needed levels of noteholder participation and would extend the offer for a sixth time, according to a Reuters report.
The extension is until December 30, 2009 – 11:59 PM ET.
Union workers plan to stage a protest on Wednesday against hedge funds and banks that they believe are blocking a successful exchange by holding positions that could generate profits from the company’s failure.
The company said that 84% of the company’s outstanding notes have been tendered in the proposed exchange for equity. However, YRC still had participation representing only 59% of its USF 8-1/2 % notes and needs about 70%.
YRC Worldwide said that its liquidity position is dire and it needs to secure the debt exchange by the end of the year.
I don’t know what YRC Worldwide is doing behind the scenes in order to win over additional debt holders, but whatever it is I would say it is not working as they are now on the sixth extension.It appears as if YRC is simply extending the deadline and pretending that they can be successful.
Like I said yesterday, YRC Worldwide is simply delaying the inevitable bankruptcy in my opinion. Even if the debt for equity exchange meets the set goals, it will probably only buy the company another 6 months to a year of life before they are in another dire situation.
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