Today’s Trucking magazine reported that trucking giant YRC may be on its last legs.
"After maneuvering around bankruptcy over the last year with a series of cost cutting measures and restructuring agreements with creditors and the Teamsters, the company stated in its 10K filing with the federal Securities and Exchange Commission on Monday that it faces a higher interest rate on deferred pension obligations owed by the company to the union," the magazine reported. "As a result, ‘the Pension Fund Condition has not been satisfied’ and ‘a Milestone Failure has occurred.’"
Without additional concessions, YRC creditors could declare the company in default, thereby forcing into bankruptcy. “In the 10K filing, YRC outlined several outcomes from Chapter 11, which could inevitably spell the end of the company:
Customers would likely stop using YRC to avoid the possibility of freight being stranded in the event YRC ceases operations,” the magazine reported.