YRC Worldwide plummets on union worries

The Teamsters say a critical worker contract extension looks unlikely, which could trip up the company's finances.

By InvestorPlace Jan 9, 2014 3:21PM

Image: Arrow Down (© Kyu Oh/Photodisc/Getty Images)By Christopher Freeburn


Shares of YRC Worldwide (YRCW) took a beating in Thursday trading -- dropping by more 21% at their worst point -- after the Teamsters union said a critical contract extension might be voted down by members.


Under a deal with Credit Suisse (CS), the shipping and transportation company is looking to obtain $1.15 billion in loans to be repaid in five years.


Bloomberg reported that the trucking company plans to use the loans to refinance its existing debt -- $1.4 billion, on which it's paying $150 million in interest payments a year -- by "as much as a third," according to CEO Jamie Pierson.


The new loans for YRC Worldwide are contingent on a vote by the Teamsters union to extend its current contract with YRC Worldwide to 2019.

Although results of the vote won’t be released until later Thursday, the Teamsters union said that early returns suggested that its extension with YRC Worldwide seemed unlikely.


YRCW stock fell more than 70% between July and November as its financial problems mounted, but YRCW stock had regained some ground since December.


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Tags: YRCW
4Comments
Jan 9, 2014 5:29PM
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it would be an interesting milestone to see the Teamsers disappear! 
Jan 9, 2014 5:45PM
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I thought that Unions were good for America.  Duh.  Duh.
Jan 11, 2014 1:54AM
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Republicans reduce their workforce!
Republicans reduce employee wages!
Republicans outsource jobs!
Republicans eliminate pensions and benefits!
Republicans want to eliminate Social Security, Medicare, Medicaid and Snap!
Republicans want to end Unemployment benefits, thus forcing more people on Welfare, which they want to eliminate!
Republicans want to destroy Unions and enforce "Right to Fire" states.
Republicans want Corporate Fascism and an Oligarchy to rule the land!
Republicans worship money and obscene profits above all else!
Republicans want your vote to make all these things a reality!

Is it any wonder why Republicans are losing and becoming extinct?

Mainstream Americans will not allow Republicans to destroy America!

God bless America!
Jan 10, 2014 2:08PM
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Since it's an election year, we Repukelicans all of sudden, care about the poor.

Could we get your vote please and in return, we promise to take good care of you. In fact, when we are done with you, you will never suffer from pain or worries ever again. WE HAVE A PLAN!

We are also setting up thousands of food trucks from coast to coast, to help feed you and your families through these tough economic times.

So, all you beautiful poor people,.... "Come and get your gruel, we aren't at all that cruel".
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