OVERLAND PARK, Kan., Dec. 9, 2013 (GLOBE NEWSWIRE) -- YRC Worldwide Inc. (Nasdaq:YRCW) announced today that it is continuing to execute on its plan to refinance its capital structure by successfully achieving yet another milestone. "The affirmative vote from local IBT leaders allows us to begin the ratification process by which the company is seeking to extend the current MOU [Memorandum of Understanding] to March 31, 2019, gain additional operating flexibilities in areas such as the increased use of purchased transportation and utility employees, among others, and allows us to move forward with our effort to refinance the company's balance sheet," stated YRC Worldwide CEO James Welch.
"This has been a long, two-year journey that started with shedding non-core assets which led to an intense focus back on our core business – North American LTL. Now, with improved results, renewed focus on our people and our processes, and support from our single largest partner, we are at the stage where we can finally address the bloated balance sheet that we inherited when we took over in July 2011.We have pursued a deliberate strategy to improve both our operations and our balance sheet, and we will constantly work to improve margins and returns for our investors. This agreement and our contemplated financings will be the final hurdle we need to clear to have a strong, stable business, which will provide great value for our stakeholders, job security for our employees and improved service for our customers," added Welch.
"Our union and non-union employees have played a critical role in YRC Worldwide emerging from the economic downturn and previous management missteps, and we are now driving down the road to recovery. We appreciate the sacrifices that all of our employees and their families have made," said Welch. "The good news is our proposed agreement will not cut current wages of existing employees or reduce their health and pension contributions, which were important considerations as we designed the proposal to cut costs and improve service in this competitive industry environment," Welch stated. Savings from the proposed agreement and other corporate initiatives are forecasted to be approximately $100 million per annum; the majority of which would have been realized if the agreement would have been in place at the beginning of 2013.