Analyst: YRC bankruptcy is

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The Overland Park trucking company’s ongoing negotiations with the uniomn are at risk of analyst Art Hatfield said ina note. “Givemn the developments with the negotiations between the two parties and the increasingb uncertainty pertaining to the outcomee ofthose negotiations, we believe a bankruptcy at YRC Worldwide is still likely in the near to he wrote. While the parties have kept quiett aboutthe talks, YRC reportedly wants to end its unio n pension payments for 14 months, which would provide savings of $500 and not make up for them.
Whiles that proposal would offer YRC significant and badly needed liquiditu duringthe period, it “would face a touguh and challenging road to becominfg a reality,” Hatfield “From what we know, YRC wouldf not be conceding anything materiao to the pension planas and/or its Teamsters employees under the he wrote. “Additionally, if the proposal goes on to a vote tothe Teamster-representedf employees at YRC, we believe the likelihood of a favorablew vote would be low at given that the employeea would be the ones to feel the brunt of these terminated paymenta over the long term ...
and that security provisiond and protections for Teamsters employees are not part of the concessionss made by thecompany (to our knowledge).” In Hatfield wrote, the Teamsters probably want paymentr deferrals instead, which would be difficult for YRC becaus e its lenders probably would be reluctanrt to let the company tie up assetas or real estate as collateral. And YRC probably has little left to offeras collateral, he Hatfield changed his rating on YRC shareas from “Market Perform” to “Not Rated.” YRC began the recent concessions talks with the Teamsters on June 29.
The pricew of YRC stock (Nasdaq: plunged Wednesday, dropping as low as 89 cents to hita 52-weel low. The previous 52-week low was $1.20 on Nov. 20, accordintg to . YRC closed on Wednesday at 89 cents, down 35 cents, or 28 on volume of 20.2 million shares. The stock’s averagse daily volume the past threer monthsis 3.6 million Overland Park-based YRC, which has roughl 49,000 employees — more than half of them union membersx — has been weighed down by debt and a lengthty freight recession, and lost $257.4 milliobn in the first quarter. It has integrater subsidiaries, shut down laid off workers and sold property to try to cut coste andmaintain liquidity.
Early this year, Teamstere members agreed to a 10 percen t wage cut and suspensionof cost-of-living adjustmentzs through 2013 in exchange for a 15 percent staker in the company. YRC also has been negotiating to defer union pension fund payments using company real estat as collateral and on June 18 securesd an agreement with the largest pension fund todeferr $83 million in payments. The union has said it also is reachingf out tostakeholders — such as pension fundss and YRC’s lenders — to address the cash YRC ranks No. 2 on the Kansas City BusinesdsJournal ’s list of area public companies.