Trucking giant YRC Worldwide will be dropped from the Dow Jones Transportation Average effective Dec. 11..
The struggling company continues to attempt rescheduling of $550 million, a deal for which it needs bondholders’ approval. YRC hopes to make a debt for equity exchange, effectively granting of its creditors 95 percent of the company’s common stock., but needs its bondholders to agree to the deal. Failure to do so could result in a filing for bankruptcy protection for the leading less-than-truckload carrier.
YRC has only remained in trading due to support from trade unions and lenders, the source said. The removal from the Dow reflects a certain amount of doubt as to whether the company can pull the deal through, though if bankruptcy protection becomes a reality, the removal would be required anyway.