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YRC Worldwide Deadline Extension Sparks Volume Jump

YRC Worldwide once again extended a deadline for its debt-for-equity offer



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YRC Worldwide

(YRCW) - Get Report

shares jumped Wednesday on a surge in volume after the trucking company once again extended a deadline for its debt-for-equity offer.

YRC Worldwide

said it has extended the deadline for its proposed debt-for-equity exchange for a second time until Thursday night due to a weak response from noteholders. The offer was set to expire Tuesday night.

Last month, YRC Worldwide launched the exchange offer and said that, with full participation, it would see noteholders exchange approximately $536.8 million in notes plus accrued and unpaid interest for shares of common stock and new Class A convertible preferred stock. Together on an as-if converted basis, it would represent 95% of YRC Worldwide's common stock.

"The company is in constructive discussions with its stakeholders related to the exchange offers," YRC Worldwide said in a statement Wednesday.

Last week,

YRC Worldwide

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first extended the deadline as not enough note holders tendered their notes.

The debt exchange, if completed, is expected to help YRC Worldwide gain cash and remain afloat, although it will cause massive dilution for current shareholders. In recent months, the company has struggled while trying to stave off bankruptcy, resorting to massive job cuts and selling real estate. Since the debt-exchange offer was first announced on Nov. 2, shares have tumbled more than 75%.

On Wednesday, though, shares of YRC Worldwide were climbing 13 cents, or 16%, to 96 cents. Earlier in the session, the stock touched an intraday high of $1.06. More than 8.76 million shares changed hands by 11 a.m. EST Wednesday, compared to the stock's 50-day average daily volume of 8.66 million, according to the



YRC Worldwide has a 58.8 million-share float with a massive short interest float of 50.2% as of Nov. 30, according to Yahoo! Finance. Insiders hold only 1.5% of the company's shares, with another 57.8% owned by institutions.

-- Written by Robert Holmes in Boston


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