YRC bankruptcy fears overstated: source

NEW YORK — Rumors that one of the world’s largest LTL carriers is on the verge of bankruptcy are "overblown" according to a report by the Associated Press.

An executive from a company tapped to offer a restructuring blueprint for YRC Worldwide told AP that the company can "make this work" without bankruptcy.

Financial adviser Tenex Capital Management is guiding YRC through a restructuring plan, which includes negotiating deals with its bondholders, as well as cutting costs and streamlining operations.

The LTL giant recently forged a tentative agreement with the International Brotherhood of Teamsters that would help the trucking company cut costs and maintain cash flow. 

YRC, which is the parent of Winnipeg-based YRC Reimer (formerly named Reimer Express), has made progress, said the source, who admits that reform has not been "without challenges."

"This one has been a little harder than most."

But some Wall Street analysts aren’t as optimistic. Morgan Keegan said that a bankruptcy at the struggling carrier "still likely in the near to mid-term" — although the forecast was made just before the Teamsters agreed to concessions.