YRC, lenders agree to reset financial covenants

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YRC Worldwide Inc. on Monday, April 30, announced that it has reached an agreement with its lenders to reset certain financial covenants over the life of the loans and allow the company to retain all proceeds from the auction of certain surplus properties. The Overland Park, Kan.-based company says the amendments were supported by all lenders.

“When YRCW’s new leadership team was put in place last year, we refocused the company on its core strengths to position the business as a respected industry leader in the North American less-than-truckload shipping industry,” says James Welch, chief executive officer of YRC Worldwide. “The new leadership team developed a strategy and business plan, including updated forecasts focused on reinvesting in the quality of the service we provide, and we have successfully executed against both our qualitative and quantitative objectives. To date, we are pleased to have exceeded our forecast and to have reached this agreement with our lenders, which will allow us to continue building on our current momentum and successes.”

Welch says YRCW now has the financial flexibility needed to support our growth strategies and to continue gaining market share. “We are achieving operational improvements, increasing profitability and better serving our customers,” he says.

Jamie Pierson, chief financial officer of YRC Worldwide, says that over the last several quarters – while strengthening its liquidity position and sharpening its focus on the North American LTL shipping market – the company has announced the dispositions of its truckload subsidiary and a significant portion of its excess real estate, as well as the divestiture of one of its Chinese joint ventures.

BNSF Logistics recently selected YRC Worldwide subsidiary YRC Freight for its 2011 Carrier Excellence Award in the LTL services category. Also, the National Shippers Strategic Transportation Council presented its 2012 LTL Carrier of the Year to YRC Freight.

“This agreement and unanimous support of all of our senior lenders is a testament not only to what we have done but also to what we are doing,” Pierson says. “Now, it is time to return this company to the prominence and pride that it once held as the most revered company in the industry.”