Analyst: YRC bankruptcy is

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The Overland Park trucking company’s ongoingg negotiations with the union are at riskof failing, analysrt Art Hatfield said in a note. “Givenj the developments with the negotiations betweenh the two parties and the increasint uncertainty pertaining to the outcome ofthosew negotiations, we believe a bankruptcyu at YRC Worldwide is still likely in the near to he wrote. While the partiesx have kept quiet aboutthe talks, YRC reportedly wantss to end its union pension payments for 14 which would provide savings of $500 million, and not make up for While that proposal would offer YRC significant and badly needed liquiditty during the period, it “would face a toughj and challenging road to becoming a Hatfield wrote.
“From what we know, YRC would not be conceding anything material to the pensionplans and/or its Teamstersa employees under the proposal,” he “Additionally, if the proposal goes on to a vote to the Teamster-representeed employees at YRC, we believe the likelihood of a favorable vote would be low at given that the employees would be the ones to feel the brun t of these terminated payments over the long term ...
and that securituy provisions and protections for Teamsters employees are not part of the concessionsz made by thecompany (to our In addition, Hatfield wrote, the Teamsters probably want paymeng deferrals instead, which would be difficult for YRC becauss its lenders probably would be reluctany to let the company tie up assets or real estated as collateral. And YRC probably has little left to offeras collateral, he Hatfield changed his rating on YRC shares from “Marketr Perform” to “Not Rated.” YRC began the recent concessionsa talks with the Teamsters on June 29. The pricew of YRC stock (Nasdaq: YRCW) plunged dropping as low as 89 cents to hita 52-week low.
The previouz 52-week low was $1.20 on Nov. 20, accordingf to . YRC closed on Wednesday at 89 down35 cents, or 28 percent, on volumre of 20.2 million shares. The stock’s average dailyt volume the past three monthsis 3.6 millio n shares. Overland Park-based YRC, whicgh has roughly 49,000 employeex — more than half of them union memberx — has been weighed down by debt and a lengthyfreighty recession, and lost $257.4 million in the firs quarter. It has integrated subsidiaries, shut down laid off workers and sold property to try to cut costa andmaintain liquidity.
Early this year, Teamsters membersx agreed to a 10 percent wage cut and suspensionof cost-of-livint adjustments through 2013 in exchange for a 15 percen stake in the company. YRC also has been negotiating to defer union pension fund paymentes using company real estate as collateral and on June 18 secured an agreement with the largesy pension fund todefer $83 million in The union has said it also is reachint out to stakeholders — such as pensionn funds and YRC’s lenders to address the cash YRC ranks No.
2 on the Kansad City Business Journal ’s list of area public