YRC Worldwide Extends Swap Deadline Again
NEW YORK (AP) ¿ Shares of YRC Worldwide Inc. rose Tuesday after it extended the deadline for its debt exchange again, but an analyst said the move might merely be delaying an inevitable bankruptcy filing.
YRC shares rose 6 cents, or 6 percent, to $1.01 in midday trading.
The cash-strapped company, one of the country's largest truckers, gave itself until Tuesday at midnight to persuade bondholders to exchange their notes for equity. YRC has already extended the deadline several times in hopes of getting more bondholders to jump on board. It also lowered the threshold of debt holders it needs to approve the swap.
As of midnight Monday, 53 percent of the 8.5 percent notes and 92 percent of the 5 percent and 3.375 percent notes had been tendered. It needs 70 percent of the 8.5 notes and 85 percent of the 5 percent and 3.375 percent notes to be tendered for approval.Combined, the tendered amount so far represents 81 percent of the company's outstanding notes. That's just above the 80 percent tendered as of Dec. 23. Stifel Nicolaus analyst David Ross said he's "unsure why any bondholders who have not tendered their shares to-date would do so at this point." The company needs this debt-for-equity swap to succeed in order to avoid a bankruptcy filing.
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