KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comYRC shares sink after debt exchange
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Associated Press - November 2, 2009 12:44 PM ET
NEW YORK (AP) - YRC Worldwide shares plunged more than 50 percent Monday after the struggling trucking company launched a debt exchange offer that could drastically reduce current shareholders' stakes.
The move is part of Overland Park, Kan. YRC's effort to get access to cash and avoid a bankruptcy filing, which has been rumored for months. It has struggled to integrate 2 of it units and suffered through a dramatic falloff in freight demand amid the recession.
YRC runs trucks under the Yellow, Roadway, New Penn and Holland names.
YRC Worldwide Inc. said it intends to launch an exchange offer of $536.8 million in notes for common and preferred stock equal to 95 percent of its common shares.
Shares plunged $1.93, or 53 percent, to $1.72 in afternoon trading.
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