Key component of YRC-Teamsters plan okayed
OVERLAND PARK, Kan. – Embattled LTL carrier YRC got the green light from the Teamsters and lenders for an asset-based lending (ABL) agreement that would maintain operational funding to keep the company afloat.
"We now are nearing the finish line on this important transaction that will help save 25,000 Teamster jobs at YRCW," said Teamsters General President Hoffa.
The Teamsters and YRCW have been working towards the deal for two years.
The three-year, $400 million asset-based facilities will provide maximum liquidity and flexibility for operations going forward, according to a press release.
The restructuring agreement will also reportedly reduce company debt in the future.
The restructuring is set to close later this month, but whether it does
remains to be seen.
Earlier this month rival LTL carrier ABF won an appeals court ruling which allows it to proceed with a lawsuit against YRC and the Teamsters.
The suit claims that the restructuring deal and concessions involved discriminate against other Teamster-based companies that are part of the National Master Freight Agreement.
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