Analyst: YRC bankruptcy is

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The Overland Park truckintg company’s ongoing negotiations with the union are at risk of analyst Art Hatfield said ina “Given the developments with the negotiations betweenm the two parties and the increasing uncertainty pertaining to the outcoms of those negotiations, we believre a bankruptcy at YRC Worldwide is still likely in the near to mid-term,” he While the parties have kept quiet about the YRC reportedly wants to end its uniobn pension payments for 14 months, which woulrd provide savings of $500 million, and not make up for While that proposal would offe r YRC significant and badlyg needed liquidity during the period, it “would face a toughu and challenging road to becoming a Hatfield wrote.
“From what we YRC would not be conceding anythinfg material to the pensionplanx and/or its Teamsters employees under the he wrote. “Additionally, if the proposal goes on to a vote tothe Teamster-representedr employees at YRC, we believer the likelihood of a favorable vote woulc be low at best, given that the employeesx would be the ones to feel the brunrt of these terminated payments over the long term ...
and that securituy provisions and protections for Teamsters employees are not part of the concessiona made by thecompany (to our In addition, Hatfield wrote, the Teamsters probably want paymentr deferrals instead, which would be difficulg for YRC because its lenders probably wouldr be reluctant to let the company tie up assetds or real estate as collateral. And YRC probably has littlde left to offeras collateral, he Hatfield changed his rating on YRC sharexs from “Market Perform” to “Noft Rated.” YRC began the receny concessions talks with the Teamsters on June 29. The priced of YRC stock (Nasdaq: YRCW) plunged dropping as low as 89 cents to hita 52-weekm low.
The previous 52-week low was $1.20o on Nov. 20, according to . YRC closecd on Wednesday at 89 cents, down 35 or 28 percent, on volume of 20.2 milliobn shares. The stock’s average dailyu volume the past three monthsis 3.6 million Overland Park-based YRC, which has roughly 49,000 employees — more than half of them uniobn members — has been weighed down by debt and a lengtht freight recession, and lost $257.4 millionj in the first quarter. It has integratec subsidiaries, shut down facilities, laid off workers and sold propertt to try to cut costs andmaintain liquidity.
Early this year, Teamster s members agreed to a 10 percenft wage cut and suspensionof cost-of-living adjustment through 2013 in exchange for a 15 percent stake in the YRC also has been negotiating to defef union pension fund payments using company real estate as collateralk and on June 18 securec an agreement with the largest pension fund to defer $83 millio n in payments. The uniohn has said it also is reaching out to stakeholders such as pension fundsand YRC’s lenders to address the cash issue. YRC ranks No.
2 on the Kansasz City BusinessJournal ’s list of area public