OVERLAND PARK, Kan. (
shares fell Thursday on increased volume after the trucking company extended a deadline for its debt-for-equity offer for a third time as its bid to stay afloat once again failed to reach a minimum threshold.
said Thursday it has extended the deadline for its proposed debt-for-equity exchange for a third time until Dec. 23 due to a weak response from noteholders. The offer was set to expire Thursday night.
After falling short again of the 95% participation rate needed, YRC Worldwide amended the minimum tender condition for the exchange offers, now requiring 70% of the aggregate principal amount outstanding of the 8.5% notes and 85% of the aggregate principal amount outstanding of the 3.375% notes and the 5% notes on a combined basis in order to be successfully completed.
extended the deadline for a second time until Thursday night, after first extending it last week as not enough
noteholders tendered their notes.
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 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%.
reported Thursday that International Brotherhood of Teamsters President James Hoffa sent a letter to
CEO Lloyd Blankfein, arguing that the bank is creating derivatives trades that would benefit from the bankruptcy of YRC Worldwide.
Hoffa wrote that Goldman Sachs "is actively soliciting bond trades for clients and underwriting credit-default swaps to benefit from a failed exchange and resulting bankruptcy," according to the
Shares of YRC Worldwide were lately falling by 6 cents, or 6%, to 95 cents, retracing some of Wednesday's 20% surge. More than 2 million shares changed hands in the first 30 minutes of trading Thursday, compared to the stock's 50-day average daily volume of 8.94 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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