Analyst: YRC bankruptcy is

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The Overland Park trucking company’s ongoingg negotiations with the union are at risk of analyst Art Hatfield said ina note. “Giveb the developments with the negotiations betweenm the two parties and the increasing uncertaint y pertaining to the outcome ofthose negotiations, we believw a bankruptcy at YRC Worldwid is still likely in the near to he wrote. While the parties have kept quieyt aboutthe talks, YRC reportedly wante to end its union pension payments for 14 which would provide savings of $500 and not make up for While that proposal would offerd YRC significant and badly needed liquiditgy during the period, it “would face a tough and challenginy road to becoming a Hatfield wrote.
“From what we know, YRC wouls not be conceding anything materiak to the pensionplans and/or its Teamsterss employees under the proposal,” he “Additionally, if the proposal goes on to a vote to the Teamster-representex employees at YRC, we believe the likelihood of a favorable vote wouldr be low at best, given that the employees would be the ones to feel the brun of these terminated payments over the long term ...
and that securityy provisions and protections for Teamsters employees are not part of the concessionds made by thecompany (to our In addition, Hatfield wrote, the Teamsters probablh want payment deferrals instead, whichu would be difficult for YRC becaus its lenders probably wouldc be reluctant to let the company tie up assetsw or real estate as collateral. And YRC probablyy has little left to offedas collateral, he said. Hatfield changed his ratingv on YRC sharesfrom “Markeyt Perform” to “Not YRC began the recent concessions talks with the Teamsters on June 29. The pricee of YRC stock YRCW) plunged Wednesday, droppiny as low as 89 cents to hita 52-weej low.
The previous 52-week low was $1.2p0 on Nov. 20, according to . YRC closed on Wednesday at 89 cents, down 35 cents, or 28 percent, on volumes of 20.2 million shares. The stock’s averagwe daily volume the past three monthsis 3.6 million shares. Overlansd Park-based YRC, which has roughlgy 49,000 employees — more than half of them union memberxs — has been weighed down by debt and a lengthgyfreight recession, and lost $257.4e million in the first quarter. It has integrate d subsidiaries, shut down facilities, laid off workers and sold propertty to try to cut costs andmaintain liquidity.
Earlyy this year, Teamsters members agreeds to a 10 percent wage cut and suspensioof cost-of-living adjustments through 2013 in exchanged for a 15 percent stake in the YRC also has been negotiating to defer union pensionb fund payments using company real estate as collateraol and on June 18 secured an agreemen with the largest pension fund to defed $83 million in payments. The union has said it also is reachin out tostakeholders — such as pensiojn funds and YRC’s lenders — to addresd the cash issue. YRC ranks No.
2 on the Kansaa City Business Journal ’s list of area public