One of the United State’s largest trucking companies,YRC Worldwide Inc. may file for bankruptcy this weekend according to an analyst despite attempts to complete a debt-to-exchange offer.
Bond holders in the Kansas based company have had the offer, which expired Wednesday at midnight, extended to them six time. The offer in itself was the companies last ditch effort to free up cash as it would make current shares near worthless.
While some took them up on the offer, switching their bonds out for equity, YRC doesn’t have near enough and has hardly any time to produce the remainder.
The company would need to have funds available to make a $19 million interest and fee payment by Thursday. At present the liquidity position is unsustainable.
If the money is not there or YRC doesn’t receive a waiver from its lenders, many predict the company will close as soon as this weekend. Company representatives from YRC are insisting such is not the case and that the trucking corp. will continue doing business in the New Year.
Shares slipped 4.6 cents or 4.5 percent, to hit 98.4 cents in afternoon trading.
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