YRC still hanging in there
OVERLAND PARK, Kan. — The ground beneath LTL giant YRC Worldwide could be firming up as the struggling carrier was able to negotiate a $70 million deal with investors this week that will help meet impending debt obligations.
The company, which has been besieged over the last year by speculation that it is headed to bankruptcy, said that the deal calls for the sale of $70 million of its 6 percent senior convertible notes due 2014.
The carrier has been working to restructure its operations for over a year and maintain marketshare amid very aggressive pricing competition from rival LTL carriers.
"Upon the closing of this funding, our management team will be able to focus on operational improvements without the financial overhang related to these debt maturities that have concerned our customers in recent months," said YRC chief executive Bill Zollars.
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