YRC Worldwide Inc.
YRC Worldwide Inc. has reached an agreement with some of its creditors to reduce its debt by about $300 million, a move the carrier said is a key to obtaining new concessions from the Teamsters union.
As a result of the agreement, YRC’s interest payments might be cut by $30 million to $50 million annually from the $150 million it currently pays, Chief Financial Officer Jamie Pierson told Bloomberg News Dec. 23. The deal is contingent on getting agreements from 90% of its pension fund debt holders.
“The agreement is a momentous step toward delevering the company’s balance sheet, significantly improving the company’s credit profile, and is expected to secure some of the best paying jobs in the [less-than-truckload] industry,” CEO James Welch said in a statement.