Recall that YRC Worldwide (YRCW) after extending the cutoff date six times finally suckered convinced debt holders to convert their holdings into common equity. The sharp declines in the stock price of YRC Worldwide is in part due to the massive dilution from the debt for equity deal.
I opined just last week that even if YRC Worldwide was successful in convincing enough of their debt holders to do the swap I felt it would not be enough for the company. It is my view that the debt for equity exchanges buys them some time, but that is all. I know there are many hard working men and women at YRC Worldwide who are out on the road trying to make the business a success. But, the problems with YRC Worldwide are not the men and women on the road, but with the poor management that has placed the company in a precarious financial state. Of course the global economic problems have not helped, but upper management at YRC has run this company poorly and in the process has placed the futures of their employees, the ones doing the real work, hanging in the balance.
Today Standard & Poors downgraded YRC Worldwide 4 notches from a rating of CC (highly vulnerable, very speculative) down to SD (has selectively defaulted on some obligations). There is only one rating left on the scale and that is a full default rating.
I hope YRC Worldwides management can get their act together once and for all, otherwise the lines at the unemployment offices will grow yet again. I personally know some long haul truckers and I know they have it tough out on the roads. It is a demanding occupation that puts lots of pressure on their families. I realize that there are some people in this country who feel truck drivers have it too easy, they don’t. If you want your organic lettuce, your latest DVD at Walmart, or another iSomething from Apple, then you should give a little respect to the ones on the road trying to make a living in the midst of the worst economy since the Great Depression.
full disclosure: I have no position in YRC Worldwide stock (long or short)
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I have worked at yellow for 15 years all though theirs plenty of blame to go around what you said about upper management was right on. you should see the mens faces each day thanks for the story. some day are grand kids will study this.
My husband has worked for yrc for 31 plus years and is 64. Too old to start over and with the pension in jeapordy we could be homeless in a year. I bet Mr, Zollar has a nice next egg that he earned because the little people worked hard and gave up over 15% of their salary. If he gets let go, he will have a nice peice if c hange to live on
this is what all the young guys are talking about. the man has 31+ yrs. in the teamsters an he is to old to start over dah. he’s already had a career for christs sake RETIRE! that’s $3100. a mouth in retirement. an thats not counting his social security. jesus whats the matter with you! time to enjoy your life. i left with 23 yrs. an of course i would have liked to get my 25 but jesus enough is enough. an i’m shorting myself $600 a mouth but i’ve had enough of this yrc crap. it’s the young guys i worry about.