OVERLAND PARK, Kan., July 8, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- YRC Worldwide Inc. (Nasdaq: YRCW) announced today additional progress in its comprehensive plan to realize efficiencies from the YRC integration, restore financial strength, and position its operating companies for future success.
The progress report includes updates on five key areas:
-- Network re-engineering - In March 2009, the company took a trailblazing
step forward by integrating the Yellow Transportation and Roadway
networks into YRC. The move created the most comprehensive LTL network
in North America, allowing the company to reduce facilities and costs,
while enhancing services.
-- Continued support from lender group - Last month the company announced
an amendment to its bank agreement to provide for the immediate release
of escrow funds generated from the company's prior asset sales to
pay down the revolving credit facility without reducing the
company's borrowing availability under the facility.
-- Pension fund progress - YRC Worldwide announced an agreement last month
with Central States, Southeast and Southwest Areas Pension Fund
("Central States"), the largest of the company's
International Brotherhood of Teamsters ("IBT") multi-employer
defined benefit pension funds, to provide certain of the company's
real estate as collateral in lieu of pension contribution payments
during the second quarter for a deferral of $83 million. Since the
announcement, seven additional funds have joined as participants in the
same agreement for a deferral of an additional $11 million. The company
continues discussions with its remaining IBT multi-employer pension
funds.
-- Teamsters discussions - The company is continuing face-to-face
discussions with the IBT this week seeking to modify the terms of the
current labor agreement for its employees covered by the National Master
Freight Agreement. The discussions remain productive.
-- Retention of advisors - YRC Worldwide retained financial advisors
several months ago, including Tenex Capital Management, Alvarez and
Marsal and Rothschild Inc., to assist in formulating its comprehensive
strategic plan to address its capital structure and liquidity needs. In
this regard, Rothschild has initiated preliminary discussions with
several significant holders of the company's debt securities.
"We can't control the economic environment, but we certainly can and are controlling our response to it," said Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Our self-help recovery plan is proactive and has the support of our stakeholders. We are taking the steps needed to manage our plan today, and position our company for success as the economy recovers."
YRC Worldwide is finalizing the date for its second quarter earnings and expects to announce the date within the next week.
YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Logistics, New Penn, Holland, Reddaway and YRC Glen Moore. Building on the strength of its heritage brands, Yellow Transportation and Roadway, the enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 49,000 people.
SOURCE YRC Worldwide Inc.
http://www.yrcw.com
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