Analyst: YRC bankruptcy is

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The Overland Park trucking company’s ongoing negotiationsz with the union are at risk of analyst Art Hatfield said ina “Given the developments with the negotiations betwee the two parties and the increasing uncertainty pertainingv to the outcome of those we believe a bankruptch at YRC Worldwide is stilp likely in the near to mid-term,” he While the parties have kept quiegt about the talks, YRC reportedly wants to end its union pensioj payments for 14 months, whicb would provide savings of $500 and not make up for them.
While that proposal would offer YRC significant and badly needed liquidity during the it “would face a tough and challengin g road to becoming a reality,” Hatfiel wrote. “From what we YRC would not be conceding anythinf material to the pensionjplans and/or its Teamster s employees under the proposal,” he wrote. “Additionally, if the proposal goes on to a vote tothe Teamster-representedc employees at YRC, we believ the likelihood of a favorable vote would be low at given that the employeesd would be the ones to feel the brunt of these terminated payments over the long term ...
and that security provisionsd and protections for Teamsters employees are not part of the concessionds made by thecompany (to our In addition, Hatfield wrote, the Teamsters probably want paymen t deferrals instead, which would be difficult for YRC becausde its lenders probably would be reluctant to let the compang tie up assets or real estate as And YRC probably has little left to offer as he said. Hatfield changed his ratin on YRC sharesfrom “Market to “Not Rated.” YRC begamn the recent concessions talks with the Teamsters on June 29. The price of YRC stock YRCW) plunged Wednesday, dropping as low as 89 cent to hita 52-week low. The previous 52-weekl low was $1.
20 on Nov. 20, accordinv to . YRC closed on Wednesda at 89 cents, down 35 cents, or 28 on volume of 20.2 million shares. The stock’s average daily volume the past three monthsis 3.6 million shares. Overland Park-baserd YRC, which has roughly 49,00o employees — more than half of them uniob members — has been weighed down by debt and a lengthfreight recession, and lost $257.4 millionh in the first quarter. It has integrated shut down facilities, laid off workers and sold propertyy to try to cut costs andmaintain liquidity.
Early this year, Teamsterzs members agreed to a 10 percent wage cut and suspensiobof cost-of-living adjustments through 2013 in exchang e for a 15 percent stakre in the company. YRC also has been negotiatingh to defer union pension fund payments using companyh real estate as collateral and on June 18 secure an agreement with the larges t pension fund todefer $83 millionh in payments. The union has said it also is reachin out tostakeholders — such as pensiom funds and YRC’s lenders to address the cash issue. YRC ranks No. 2 on the Kansass City BusinessJournal ’s list of area publiv companies.