The saga
continues.....$this->bbcode_second_pass_quote('', 'D')ec. 17 (Bloomberg) -- YRC Worldwide Inc. bonds fell after the trucking company trying to avoid bankruptcy said it needed to extend the deadline for a debt exchange in order to convince enough bondholders to tender the securities.
YRC, the biggest U.S. trucker by sales, is extending the exchange offer deadline to Dec. 23, after investors holding 75 percent of its debt initially agreed to the exchange, below the 95 percent required by bank lenders. As of 5 p.m. in New York yesterday, participation fell to 57 percent, the Overland Park, Kansas-based company said in a statement. The company said it believes some bondholders have withdrawn because they want to tender their notes only on the expiration date.
“This moves the company backwards in its efforts to restructure out of court and again increases the probability of a bankruptcy filing in the near-term,” David Ross, a Baltimore- based analyst at Stifel Nicolaus & Co., wrote in a note today. Ross has a “sell” rating on the stock.
YRC’s $150 million of 8.5 percent notes due in April fell 2.5 cents on the dollar to 58.5 cents as of 12 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
The company’s shares fell 7 cents, or 6.8 percent, to 94 cents, after earlier rising as much as 15 percent, on the Nasdaq Stock Market.