YRC Worldwide thrown another lifeline

OVERLAND PARK, Kan. — Struggling LTL giant Yellow Roadway was given another 30-day reprieve by its banking group this week.

Financiers extended the carrier’s credit agreement until Jan. 12, effectively giving YRC another month to try and sidestep bankruptcy with a debt-for-equity swap with bondholders, according to the Journal of Commerce.

This is YRC’s 13 amendment to the credit agreement since 2007.

The carrier requires 95 percent of bondholders to agree to the exchange and has only garnered 75 percent support so far.

The JOC reports that the banking group will continue to let YRC draw up to $50 million at any time from its $950 million revolver reserve block, and it suspends a minimum cash requirement through Jan. 11.

YRC is said to have lost more than $2 billion over the past couple of years and is threatened by extremely aggressive pricing from competitors.