BOUNCE

[split710]

YRCW, possible bounce

YRC Worldwide, the largest U.S. trucking company, said on Dec. 31 that bondholders agreed to swap their debt for equity, enabling the company to avoid a bankruptcy filing that may have resulted in liquidation. S&P equity analyst Kevin Kirkeby said in a Dec. 31 note that YRC reported that 88% of certain notes were tendered, allowing it to proceed, as per revised terms from lenders, with a debt restructuring.

Completion of the debt-for-equity exchange also allows YRCW to defer interest and fee payments while it continues to struggle with liquidity constraints, he said. Current shareholders will see significant dilution as tendering noteholders will receive stock representing a 94% equity stake in the company, Kirkeby said.