Troubled less-than-truckload carrier YRC Worldwide, may face bankruptcy as Teamsters seek a higher interest rate on deferred pension obligations owed by the company.
According to the 10-K annual report submitted by YRC to the Securities and Exchange Commission on Tuesday, the action by pension funds constitutes a “milestone failure” under YRC Worldwide’s credit agreement. If YRC’s creditors declare the company in default, the carrier may be forced into bankruptcy.
YRC has not indicated that it will default, and said in the SEC filing that it will continue to work toward satisfying the conditions of the restructuring agreement. However, the company did say that in the event of a default “we would seek protection under the U.S. bankruptcy code.”
According to a report on www.kansascity.com, in a memo to YRC employees, chief restructuring officer John Lamar said the multi-employer pension plans were given until March 10 to submit their non-binding agreement in principle – “which they did, except they indicated they will be seeking a higher interest rate on their deferred pension obligations.”
Lamar said that action wasn’t acceptable to “certain of the credit agreement lenders and thus constituted a ‘milestone failure’ under the company’s credit agreement,” reported the Kansas City Star’s website.
In his letter to employees, Lamar explained that the interest rate of the deferred pension note represents just one part of the restructuring effort, the website continues.
YRC Worldwide has been involved in a 401(k) Class Action Suit since 2009.
Printer Friendly Version
Email This Story
RSS
Fleets: Related News
3/16/2011 – YRC Worldwide May Face Bankruptcy Over Pensions
Troubled less-than-truckload carrier YRC Worldwide, may face bankruptcy as Teamsters seek a higher interest rate on deferred pension obligations owed by the company….
More
3/16/2011 – TCA Names 2011 Best Fleets to Drive For
The Truckload Carriers Association and CarriersEdge announced the winners of the third annual Best Fleets to Drive For survey and contest….
More
3/11/2011 – RWI Transportation Opens New Terminal in Dallas
RWI Transportation has opened a new terminal in the Dallas/Fort Worth market….
More
3/8/2011 – ABF Dual-System Network Achieves Coast-to-Coast Reach
ABF is expanding its Regional Performance Model service to the western third of the U.S., providing increased shipment velocity to 95 percent of the lanes between major markets in the West….
More
3/8/2011 – NFI Acquires World Warehouse
NFI announced the acquisition of World Warehouse and Distribution, a third-party logistics and warehouse company headquartered in Champlain, N.Y., with facilities in Champlain and Albany, N.Y., and Montreal, Canada….
More
3/7/2011 – Fortune’s Most Admired Companies: FedEx In Top 10, Trucking Performs Well Overall
The annual World’s Most Admired Companies report released last week listed FedEx as the 8th ranked company, up five positions from the organization’s rank in 2010….
More
3/3/2011 – UPS Pays $1.3 million to Settle New York State Maintenance Violation Case
Following a four-year investigation by the New York State Attorney General’s office alleging that UPS failed to maintain it vehicles and ignored out-of-service orders issued by its own mechanics, the company says it agreed to settle rather than spend additional time and money on the case. …
More
3/3/2011 – Marten Transport Increases Driver Pay
Marten Transport, a Wisconsin-based carrier, raised driver pay effective April 1. …
More
3/1/2011 – Lynden Transport Expands Service to and from Oklahoma and North Dakota
In response to customer and industry demand, Lynden Transport is offering new scheduled Less-than-Truckload (LTL) service to Oklahoma and North Dakota….
More
3/1/2011 – YRC Reaches Tentative Agreement on Debt Restructuring
YRC Worldwide has announced it has reached an agreement in principle with major debt holders for a restructuring plan….
More
2/25/2011 – FFE CEO Set to Retire
Frozen Food Express Industries, Inc. says that Stoney M. “Mit” Stubbs, Jr. has retired as Chief Executive Officer (CEO) effective at the end of day Monday February 28, 2011….
More
2/25/2011 – Con-Way Freight Helps Foil Terrorist Bomb Plot
Observant workers, diligent screening, and established security protocols in place and Con-Way Freight’s Lubbock Texas service center combined to foil a terrorist bomb plot….
More
2/23/2011 – GSO Announces Availability of GSO Overnight Ground Service
Regional carrier Golden State Overnight has announced availability of GSO Overnight Ground – a service that provides next-day ground parcel delivery to every address in California and the metropolitan regions of Nevada and Arizona….
More
2/22/2011 – Republic Moving Storage Named 2010 Top U.S. Van Line Agency
Republic Moving Storage of Chula Vista, Calif. has been chosen to receive the 2010 Moving and Storage Agent of the Year Service Excellence Award….
More
2/21/2011 – Werner Enterprises Announces Planned Management Changes
The Board of Directors of Werner Enterprises, Inc. has approved several planned management changes that will become effective following the Company’s annual stockholder meeting planned for May 10, 2011….
More
2/18/2011 – Boyd Bros. Honors 3-million-mile Driver
Boyd Bros. Transportation of Clayton, Al. has extended honors to 22-year veteran, Isaiah “Ike” Hamilton, staying safe on the road for more than three million miles….
More
2/18/2011 – AMSA Names “Independent Mover of the Year”
Albert Moving Storage of Wichita Falls, Texas has been chosen as the nation’s top independent moving company for 2010 by the American Moving Storage Association. …
More
2/16/2011 – Ryder Expands and Refreshes Rental Fleet With 6,700 New Vehicles
Ryder System, Inc. is expanding and refreshing its North American rental fleet with 6,700 new trucks, tractors, trailers, and vans to meet accelerating demand as the economy continues to rebound….
More
2/14/2011 – TCA Announces 2011 “Best Fleets to Drive For”
The Truckload Carriers Association and CarriersEdge are pleased to announce the winners of the 2011 Best Fleets to Drive For, a survey and contest that identifies North American for-hire trucking companies that provide the best workplace experiences for their drivers….
More
2/14/2011 – Con-way Freight Names New VP of Yield Management
Con-way Freight, the less-than-truckload (LTL) subsidiary of Con-way Inc. has named John P. Burton Vice President – Yield Management….
More
2/14/2011 – American Central Transport to Raise Owner-Op and Driver Pay
Effective March 1st, American Central Transport, Inc. will increase owner-operators will owner-operator rates to $.98 per loaded mile, and $.90 for authorized empty miles. Company drivers will receive up to $.45 per mile as part of a new “Pay for Performance” model….
More
2/14/2011 – Averitt Expand Flatbed Services, Adds Jobs
Averitt Express will expand the flatbed operation it launched in early 2009, and is ready to add even more drivers due to growth. …
More
2/8/2011 – Fikes Truck Line Partners with uDrove to Offer Special Incentive Program
Fikes Truck Line has partnered with uDrove LLC, which provides electronic hours of service solutions and paperwork replacement programs for the transportation industry, to offer a special incentive program for its owner-operators….
More
2/8/2011 – Land Span Offers Teams Availability Bonus
Land Span Inc. recently launched its availability bonus program to team company drivers, offering them more flexibility and control over their earnings….
More
2/7/2011 – YRC Reports Year-over-Year Improvement in Fourth Quarter
YRC Worldwide reported net income of $23 million and $0.49 earnings per share for the fourth quarter of 2010, including a $52 million benefit from an income tax settlement….
More
2/4/2011 – Roadrunner Buys Morgan Southern
Roadrunner Transportation Systems, Cudahy, Wis., has acquired all of the outstanding stock of Morgan Southern Inc. for approximately $20 million in cash….
More
2/3/2011 – UPS 4th Quarter Earnings Surge; All-Time High Predicted for 2011
UPS announced adjusted better-than-expected earnings this week for the fourth quarter of 2010….
More
2/3/2011 – Old Dominion Freight Line Fourth-Quarter Earnings Up 127 Percent
Old Dominion Freight Line reported its fourth-quarter 2010 revenue increased 28.3% to $399 million from $310.9 million for the fourth quarter of 2009, while net income was $22.1 million, up 127.8% from $9.7 million for the fourth quarter of 2009….
More
2/3/2011 – Con-way Reports Improved Quarterly, Full-Year Results
Con-way Inc. reported net income for the fourth quarter of 2010 of $2.4 million, or 4 cents per diluted share. The results compare to a fourth-quarter 2009 net loss of $1.9 million, or 4 cents per diluted share….
More
2/2/2011 – FFE Opens Driving School
FFE has opened an FFE Driver Academy in Fort Worth, Texas….
More
2/2/2011 – Landstar Reports 35 Percent Increase in Fourth Quarter Earnings Per Share
Landstar System reported 2010 fourth quarter net income of $24.1 million, or $0.50 per diluted share, compared to net income of$18.6 million, or $0.37 per diluted share, for the 2009 fourth quarter….
More
2/2/2011 – Dupre Logistics Establishes Supply Chain Division
Dupre Logistics, Lafayette, La., has opened the Supply Chain Excellence Division to help clients solve complex supply chain needs….
More
2/1/2011 – FedEx Expands LTL Offerings
FedEx Freight, a subsidiary of FedEx Corp., launched its new unified less-than-truckload network, offering customers the choice of two levels of service from a single company….
More
2/1/2011 – Interstate Transport Opens Dedicated Asset Division
On the heels of its partnership announcement with DHL Global Forwarding, Interstate Transport Inc. announced the formation of Interstate Dedicated Inc….
More
1/31/2011 – J.B. Hunt Reports Impressive Q4 Numbers
In its quarterly report released Friday, J.B. Hunt Transport Services said its fourth-quarter net income rose, as its trucking, intermodal and dedicated contract carriage units all reported improvement….
More