YRC reports approvals for crucial debt swap
OVERLAND PARK, Kan. — Struggling U.S. LTL giant YRC Worldwide took another step closer to saving itself from bankruptcy on Monday.
According to Reuters, the company announced it had received the necessary approvals from lenders to complete a critical debt-for-equity exchange offer.
The move could keep the company from going under — something analysts have been predicting would happen for months.
YRC been trying to get a majority of its bondholders to agree to swap about $536.8 million in debt for equity in order to in avoid a $19 million payment of interest and fees that the company cannot afford.
The carrier originally required 95 percent of bondholders to agree to the exchange. After only garnering 75 percent support, it lowered the threshold.
Last week, the carrier’s banking group gave it another 30-day reprieve by extended the credit agreement.
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