Skip to content
Search AI Powered
Human content, AI powered search.

Latest Stories

newsworthy

YRC requests amendment to its loan covenants

Unclear if lenders will agree to proposed change in terms.

Mark Solomon
By Mark SolomonApr 20, 2012
Mark Solomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
See Full Bio

Less-than-truckload (LTL) carrier YRC Worldwide Inc. said today it has requested to amend its loan agreement signed last July so it can conform to the agreement's requirements.

The Overland Park, Kan.-based carrier, which flirted with bankruptcy in late 2009 and has struggled financially ever since, said in a regulatory filing that it wants to increase its total leverage ratio—the ratio of debt to earnings before interest, taxes, depreciation, and amortization, by 35 percent to 55 percent. It's also seeking to relax certain financial thresholds to make it easier to meet the agreement's debt covenants.

YRC telegraphed today's move in late February, when it said in a government filing that it would need to renegotiate terms of the credit agreement because it wouldn't earn enough money to meet the requirements.

YRC said in today's filing that there are no assurances its lenders will agree to its request.

FRESH CONCERNS

Fresh concerns about YRC's continued viability have been reflected in recent months after the company's "credit-default swaps," which are sophisticated financial wagers made to hedge against a company's credit strength, began climbing.

The swaps, which investors use to protect themselves against the risks of a company's insolvency, rose to their highest levels since February 2009, according to a report on Bloomberg News. YRC spent all of 2009 on a rapid downward slide, culminating in the company's needing a debt-for-equity swap on New Year's Eve to avoid a bankruptcy filing.

James L. Welch, who was named YRC's new CEO last July, has tried to right the company in part by a series of asset sales and divestitures that would allow it to focus on its North American less-than-truckload business.

YRC operates three U.S. regional LTL carriers, as well as one in Canada. It also operates a long-haul LTL business, YRC Freight, that has struggled for several years and which has become Welch's top priority.

ArticleTransportationTrucking
april 2012yrc worldwide
ArticleTransportationTrucking
april 2012yrc worldwide

The Latest

Deutsche Bahn to sell DB Schenker to DSV
Featured

Deutsche Bahn to sell DB Schenker to DSV

CEOs: Our supply chains have a resiliency problem
Article

CEOs: Our supply chains have a resiliency problem

Hurricane Francine threatens supply chains
Featured

Hurricane Francine threatens supply chains

More Stories

Image of earth made of sculpted paper, surrounded by trees and green

Creating a sustainability roadmap for the apparel industry: interview with Michael Sadowski

Michael Sadowski
Michael Sadowski

Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled

Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.

Keep ReadingShow less

Featured

seegrid CR1_Renders_1-2_11zon.png
Article

Seegrid lands $50 million backing for autonomous lift trucks

xeneta air-freight.jpeg

Air cargo carriers enjoy 24% rise in average spot rates

The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.

Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.

Keep ReadingShow less
littler Screenshot 2024-09-04 at 2.59.02 PM.png

Congressional gridlock and election outcomes complicate search for labor

Worker shortages remain a persistent challenge for U.S. employers, even as labor force participation for prime-age workers continues to increase, according to an industry report from labor law firm Littler Mendelson P.C.

The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.

Keep ReadingShow less
stax PR_13August2024-NEW.jpg

Toyota picks vendor to control smokestack emissions from its ro-ro ships

Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.

Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.

Keep ReadingShow less
trucker premium_photo-1670650045209-54756fb80f7f.jpeg

ATA survey: Truckload drivers earn median salary of $76,420

Truckload drivers in the U.S. earned a median annual amount of $76,420 in 2023, posting an increase of 10% over the last survey, done two years ago, according to an industry survey from the fleet owners’ trade group American Trucking Associations (ATA).

That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.

Keep ReadingShow less
Copyright ©2024.