Wednesday, April 27, 2011

YRC Makes Progress on Financial Restructuring

Ray of Hope for Troubled Giant
Shipping News Feature

USA – American freight and logistics giant YRC Worldwide has stated that they have made significant progress in talks concerning the financial restructuring of the company.

In a statement the company said that progress in negotiations with its creditors and pension fund managers made it confident that it would meet its July deadline for agreeing the restructuring.

One of the world’s biggest logistics company’s YRC has suffered severe problems with debt since 2008, with talks between the company, its stakeholders and the Teamsters Union dragging on for the last three years.

Further fears for the company’s future, which posted operating losses of $231 million in 2010, $899 million in 2009 and $1.4 billion losses in 2008, had been raised when a 10th of March deadline for completion of negotiations were not met.

In addition, the company has faced legal action from competitor ABF Freight Systems on the grounds of violation of the National Master Freight Agreement (NMFA), a case that was subsequently thrown out of court.

However, this latest news marks a more buoyant attitude at the company. If the July deadline can be met it seems possible that YRC might have weathered the storm, though continued over supply on the American less-than-truckload (LTL) market means that there will continue to be tough times ahead for the US road drayage sector.