YRC Worldwide’s bondholders agreed to swap their debt for equity late last week, enabling the company to continue operating and avoid a possible bankruptcy filing, Bloomberg reported.
Bondholders with 70% of YRC’s $150 million of 8.5% notes due in April offered to tender, meeting a required threshold by Dec. 31, YRC said in a statement.
That was an increase over the 59% that participated by Dec. 29. Holders of 88% of all of the company’s outstanding bonds, with a face value of $470 million, participated in the exchange, Bloomberg reported.
YRC, which has posted $1.7 billion in losses in the past five quarters, extended the deadline for the bond exchange six times this month, while the Teamsters Union sought to overcome the resistance of bondholders who own derivatives that would profit if the company defaulted, Bloomberg said.
Less-than-truckload carrier YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.