YRC layoffs

YRC Worldwide Inc. has started its debt-for-equity exchange offer, a vital step in the company’s turnaround plan that, if unsuccessful, could end in bankruptcy.
If successful, the exchange — which would trade about $536.8 million in debt for what could be 95 percent of YRC’s common shares — promises Overland Park-based YRC (Nasdaq: YRCW) a more firm financial footing. The proposal followed “several months of ongoing, active dialogue with representatives of the noteholders,” YRC said in a Monday release.
The trucking giant set a deadline for the offer of 10:59 p.m. Dec. 7; if it succeeds, seven of YRC’s nine directors would resign at that time. Observers have likened the exchange to a step that would be taken in bankruptcy, minus the court involvement.
Debt-laden YRC depends on the exchange to get additional considerations from its lenders, such as open access to a $106 million revolver reserve and permission to start deferring payment of about $25 million a quarter in interest and fees.
If the exchange fails, YRC would talk to stakeholders about other ways to restructure outside court, including potential amendments to the exchange offer, YRC said in a Monday filing with the Securities and Exchange Commission. If such efforts still fell short, it would file bankruptcy, probably with a plan prepared in advance, the filing said.
In that case, YRC probably would have to turn to existing lenders for continued financing; if it couldn’t get enough, it would be difficult to restructure, the filing said.
“The uncertainty regarding the company’s ability to generate sufficient cash flows and liquidity to fund operations raises substantial doubt about the company’s ability to continue as a going concern,” the filing said.
On Oct. 30, YRC reported a 45 percent plunge in third-quarter revenue, but less of a loss — $158.7 million — compared with the same period last year.
http://kansascity.bizjournals.com/kansascity/stories/2009/11/09/daily7.html?ana=yfcpc

 

"...the NASDAQ’s continued listing requirements provide, among other requirements, that the minimum trading price of our common stock not fall below $1.00 per share over a consecutive 30 day trading period. Upon receipt from the NASDAQ of notice of non-compliance, we would have a period of 180 days to regain compliance with this requirement. Upon consummation of the exchange offers, the price per share of our common stock will likely be well below the $1.00 per share minimum trading price.

The shares of new preferred stock have not been and will not be listed on the NASDAQ or any other national or regional securities exchange, and we are not likely to list the shares of new preferred stock in the future. As a result, no trading market for the new preferred stock will exist upon consummation of the exchange offers, and none is likely to develop.

http://apps.shareholder.com/sec/viewerCo...

From the S-4 form filed with the Securities and Exchange Commission.

 

The 257 (Richfield, OH) barn will close January 10, 2010! At meetings held Thursday night around 9:30 pm at 218, and around 10:00 pm at 257, the 257 terminal manager Bill G. told all the dock, yard, and clerical employees who were gathered together that an "emergency change of operations" was submitted to the IBT yesterday by YRC, and that the 257 barn (which YRC leases) will close. According to Bill G. the 218 (Cleveland) terminal will become a "big end-of-the-line barn" and the breakbulk work now being done at 257 and 218 will be transferred to the 211(Akron) barn. A "small city operation" will remain at 211, but no specifics were given about where the city pu&d lines would be redrawn in Summit, Portage, Medina, Stark, and Wayne counties. Bill G. said that the "emergency change" would be heard in December with a target date of 1-10-10 for implementation.

Bill said he just found out Thursday that YRC was only leasing the 257 barn on a month to month basis the last few months, and that the decision was made by the banks not to enter into a 1 year lease like employees were originally led to believe happened.
freightmaster1
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Nashville having 27 tow motors pulled out
Execting large lay off as we had 27 motors pulled out starting today. Not sure where they are headed.
dreamertex
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@117 four were taken off the dock recently and sold by copart for a whopping $100 apiece....
baj1215
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$100.00 a piece now that is a bargain !!!! Soon you can buy tractors for $500.00 each pups to vans ranging in price up to $1000.00 each and whala a brand new trucking company is born in the ashes of a once mighty giant. Don't forget the dollies at $250.00 each also for the long haul
bosslinco76
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jan 2010 queens ny will shut its doors that term is just a losing terminal they have not made money in years so they will be next to close its door i heard this from a manager there putting a coo again on monday
unionman69
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nothing new at 309, seems really busy. They laid off 15 guys, did a small reposition, and I have been asked for ot almost everyday for the last 2 weeks.. I have no idea whats going on in their heads. lot of days I was surprised that they asked for OT, but they still offered. its almost like they want to spend money there for no reason...
tastytart
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Chicago knew they where putting themselves out of work with a no vote I just don't see how could they go back now and still save face,

What's amazing is that if this company doesn't start making some money it won't matter where the frieght is routed were all be out of work soon.

When's Yrc tanks they'll blame it all on this one vote the whole thing is a very sad joke.
kingfishcafe
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that would take the dock seniority list to around 575 working out of 940 add in the 60+ retirees since june and we are looking at about 500 men and more cuts to come after the first of the year i would imagine it will take 20 yrs to be working by the middle of january looks like i might stay warm at home soon
roadkill340
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I heard 140 to be laid off this friday. Hard to believe.
ninetyeight
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a mechanic told me today they are bringing alot of equipment to the hgts, sure doesnt sound like they have many plans on shutting us down, but Im still expecting them to "teach us a lesson"
tastytart
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city operation only by end of the year.
snake eyes
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new bid up at the hgts.. only 464 positions Im told... was also told this will not be the semi annual, so sounds like they will bid again in january, if they still exist that is.
tasty tart
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heard a bunch of mechanics got let go friday at one of the richfield terminals?anybody know about that.
abfempm
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40 in the Atlanta District....KK
kennesaw kid
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About the mechanics at CVE/RFO aka 218/257... they have now shut down the RFO shop on weekends, but of course, the entire RFO will be shut down 1/10/10. So we have vendors on the weekends from now on and we have shiny wheels coming in for city freight that goes to residences.
rocketmancve
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But you have to have a GOOD product to sell. A buddy of mine that sells for a YRC competitor in Rochester NY said they let go the last sales rep today (had 3 reps < 4 months ago). So Rochester NY has no reps, the Terminal Manager has given notice (can't say any more).........how long will Rochester be open?
mantanaNY
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The plan is to shrink the facility. Look for Local 710 workgroups to be downsized, 705 guys will be less affected. Its payback for 710's no vote. They want to give dockworkers, which are 710, 12 months to get their cdl or they will be out of a job. The new rule across the company is gonna be everyone drives. They feel it will reduce linehaul overtime expenses.
yrcobserver
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Does that mean a dock guy with 20 years DOCK seniority will be able to bump a 19 year driver ?
rv833
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It's freight we need not more drivers, I don't know how bad they hurt the dock but the road drivers are paying for this no vote that's for sure
kingfishcafe
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hope everyone's log book is legal at Terminal 309, because I informed I-DOT. Looks like some Roadway drivers will be losing more than 15% of their wages. Time to show the books/computer Roadway. Looks like they can call back some of they laid off people. If drivers cheat the system, they will pay.
sphghettijg
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last two extra board road drivers at Knoxville laid off Sunday and two bid drivers at Chattanooga Tennessee
charcoal
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3 more layed off in Hou down to 123 out of 312. New bids up go into effect Dec 12 only 120 jobs 3 more will be cut then.
htown-motorman
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December 2, 2009: YRCW will close if 1500 Teamsters in Chicago don’t take a $1.16 per hour pay cut: that’s what IBT Freight Director Tyson Johnson and IBT vice president Pat Flynn have told the YRC Teamsters.

On Dec. 1-2, YRC management gave time to Flynn and Johnson to offer a hard sell to Local 705 and 710 Teamsters at the four Chicagoland YRC and Holland terminals.
mustache
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Yep, that $69,000 a week is gonna bankrupt the company. The BILLIONS they threw away had Nothing to do with it.
vwaggs
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No frt. coming to 313 it's all going to the other terminals around the HTS. After the give backs no need to bring it here!
The wis. kid
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Don't be affraid of Bears Country. Chicago doesn't have a law against Packer Fans driving in the city. Just don't wear Packers clothing in Chicago, and do city pu/drop offs and everything will be OK.
spaghettijg
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...but as of now #378 and up are laid off so i am only 38 away and think its coming soon for me this will be the last straw for me i gave up my life for this company and the union as many of us have and no one seems to give a dam!!!!
nobid4u
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