Analyst: YRC bankruptcy is

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The Overland Park trucking company’s ongoinfg negotiations with the union are at risk of analyst Art Hatfield said ina note. “Givem the developments with the negotiationsd between the two parties and the increasing uncertainty pertaining to the outcome ofthose negotiations, we believe a bankruptcty at YRC Worldwide is stillo likely in the near to he wrote. While the parties have kept quiet about the YRC reportedly wants to end its union pension payments for14 months, which would provide savings of $500 and not make up for them.
While that proposalo would offer YRC significant and badly neede liquidity duringthe period, it “woulde face a tough and challenging road to becoming a Hatfield wrote. “From what we YRC would not be conceding anythinhg material to the pensionplans and/or its Teamsters employeees under the proposal,” he wrote. “Additionally, if the proposal goes on to a vote tothe Teamster-represente d employees at YRC, we believe the likelihoo of a favorable vote would be low at given that the employees would be the ones to feel the brungt of these terminated payments over the long term ...
and that securityh provisions and protections for Teamsters employees are not part of the concessions made by thecompany (to our knowledge).” In Hatfield wrote, the Teamsters probablyt want payment deferrals instead, whicuh would be difficult for YRC because its lenderw probably would be reluctant to let the company tie up assets or real estatew as collateral. And YRC probablyu has little left to offeras collateral, he said. Hatfield changecd his rating on YRC shareswfrom “Market Perform” to “Not YRC began the recent concessions talks with the Teamsterds on June 29.
The price of YRC stoc k (Nasdaq: YRCW) plunged Wednesday, dropping as low as 89 centsd to hita 52-week low. The previousz 52-week low was $1.20 on Nov. 20, according to . YRC closed on Wednesday at 89 down35 cents, or 28 percent, on volume of 20.2 millioh shares. The stock’s average daily volumed the past three monthsis 3.6 million Overland Park-based YRC, which has roughly 49,000 employeesx — more than half of them union members has been weighed down by debt and a lengthty freight recession, and lost $257.4 million in the firsf quarter.
It has integrated subsidiaries, shut down laid off workers and sold propertg to try to cut costs and maintain Earlythis year, Teamsters memberxs agreed to a 10 percent wage cut and suspensiohn of cost-of-living adjustments through 2013 in exchangr for a 15 percent stake in the company. YRC also has been negotiatingg to defer union pension fund payments using companuy real estate as collateral and on June 18 securerd an agreement with the largest pension fund todefet $83 million in payments. The union has said it also is reachint out tostakeholders — such as pensioh funds and YRC’s lenders — to address the cash YRC ranks No.
2 on the Kansaws City BusinessJournal ’s list of area publi c companies.