YRC layoffs

http://finance.yahoo.com/news/YRC-Worldwide-Reports-Second-prnews-660547779.html?x=0&.v=1

:Also, under the amendment, the company can retain 100% of asset sales between July 31, 2009 and August 31, 2009, up to $50 million (subject to certain conditions) and the minimum liquidity covenant during that same period has been eliminated.”

YRC Worldwide also reported aggregated cash and available unused capacity under the credit facilities of $218 million at June 30, 2009, including $165 million of cash and cash equivalents. In addition, the company had $95 million in the revolver reserve created pursuant to the company's credit agreement at June 30, 2009. The company completed $127 million of sale and financing leaseback transactions and closed on $14 million of excess properties during the second quarter.

Looks like they are selling assets to fund their losses. $369 million for the second quarter.

 

“The company expects gross capital expenditures of about $65 million in 2009 and over $100 million of cash proceeds from sales of excess properties. Sale and financing leaseback transactions are expected to generate over $300 million of cash proceeds in 2009.”

 

JOC Staff | Jul 31, 2009 1:51PM GMT

The Journal of Commerce Online - News Story

Transportation industry analysts said Friday trucking company YRC Worldwide may run out of cash in as little as three months after posting a $309 million net loss in the second quarter.

Investment firm J.P. Morgan estimated YRC went through some $57 million in cash in the three months ending June 30, but the firm said in a report that the cash loss on operations was closer to $120 million when gains from sales of assets are removed.

“Our sense is that (YRC) has enough liquidity to survive for three months or a little more, but it will soon need to show a meaningful reduction in the pace of cash burn,” J.P. Morgan equities analyst Thomas R. Wadewitz wrote in a report to investors.

David G. Ross of investment firm Stifel Nicolaus wrote that even if the company wins approval from unionized workers for a new cost-cutting labor contract, without “big” asset sales “we estimate the company violates its minimum liquidity covenant (i.e., runs out of cash) in November.”

YRC has won amendments from its lenders in recent weeks for its debt covenants.

The company listed $164.5 million in cash on its balance sheet on June 30, down from $325.3 million at the end of 2008. It also listed $769.8 million in current maturities on its long-term debt, up from $562.3 million six months ago.

 

actually..........I am soooooooooooooooooooo fed up with the incompetence and excessive amount of management at the new great YRC.These people pis away our 10 percent wage concession daily. Its not based on performance its based on personality.We have a 3-1 ratio of mismanagers to labor. Now we need to give another 5%?
Sadly I feel like a 40%percent wage concession won't be enough for these non-communicative buffoons.

falconhobo

 

New Penn Teamsters, whose votes are counted separately because they are not part of the same bargaining unit, rejected the concessions. So did Chicago Local 705, Chicago Local 710, and Local 179 who are covered by their own separate contracts.

YRC and Holland Teamsters approved the concessions with a 58% yes vote: 12,923 Yes, 9,153 No.

http://www.tdu.org/node/3279

 

YRC said it had reached another sale-leaseback agreement with NorthAmerican Terminals Management Inc. to sell excess properties for about $81 million, expected to close in the third and fourth quarters. This year, YRC expects sale-leasebacks to yield about $375 million of cash; property sales are expected to bring more than $100 million.

The pay cut and pension withdrawal starts immediately, but won’t continue unless YRC and its bank group further amend loan agreements and Teamsters pension funds approve the pension termination plan.

The concessions, the second proposed this year, include forfeiting 18 months of pension payments — which would not have to be repaid.

http://kansascity.bizjournals.com/kansascity/stories/2009/08/03/daily55.html?ana=yfcpc

 

It was a very interesting experience, and I can tell you all firsthand, HAD THIS NOT PASSED, they would have closed the doors as early as next week.....bancruptcy papers had already been filed and they were waiting for the outcome from this.

G-MAN