Thursday, March 17, 2011

YRC Worldwide (NASDAQ: YRCW): Now On Bankruptcy Watch

Shares of YRC Worldwide Inc. (NASDAQ: YRCW) tumbled more than 18% on Thursday on mounting worries that the  trucking company could go bankrupt following the company's failure to reach an agreement on restructuring. The Overland Park, Kansas-based company said in its annual report filed on Monday that it failed to get the necessary approvals for its proposed financial restructuring, which would have swapped some of the company's debt into stock. The failure to reach agreement meant the company failed to meet milestones in its credit agreement. "As a result, the required lenders have the right, but not the obligation, to declare an event of default," the company said in its annual report. The company said it would anticipate filing for bankruptcy should a default be declared. Meanwhile, Standard & Poor's on Wednesday cut the company's credit rating deeper into junk, to CC from CCC- due to "increasing bankruptcy concerns."

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