Wednesday, December 16, 2009

Gambling on YRC

This is unbelievable

From Bloomberg

Dec. 15 (Bloomberg) -- YRC Worldwide Inc., seeking to avoid bankruptcy by exchanging equity for debt, faces resistance to the swap from investors holding bonds and derivatives that pay out in a default, according to people familiar with the matter.

Yellow Freight, the largest LTL (less than truckload) carrier purchased Roadway, the 2nd largest LTL carrier several years ago.

It took forever to get the two operations merged. Also, they are union, thus quite high operating costs.

The other day their stock was around 86 cents. They are trying to restructure, but now it appears too many people have "bet" on their default, and are pushing them in that direction.

How sad.

No comments: