Shares of YRC Worldwide Inc. (NASDAQ: YRCW) sank more than 18% after the company announced that it had reached an agreement in principle, in the form of a non-binding term sheet, with certain of its key stakeholders providing for a comprehensive restructuring plan for YRC Worldwide. The company said that the non-binding term sheet provides YRCW with new and additional capital, a substantial improvement in its liquidity position, conversion of some of its debt obligations into equity and the replacement or restructuring of certain of its debt obligations. The term sheet contemplates a very substantial dilution of existing equity holders. The term sheet establishes a timeline to close the restructuring transaction by July 2011.
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