Analyst: YRC bankruptcy is

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The Overland Park trucking company’z ongoing negotiations with the uniobn are at riskof failing, analyst Art Hatfield said in a “Given the developments with the negotiations between the two partiese and the increasing uncertainty pertaining to the outcomer of those negotiations, we believe a bankruptchy at YRC Worldwide is still likelg in the near to mid-term,” he While the parties have kept quiet about the talks, YRC reportedlu wants to end its unioj pension payments for 14 months, whichg would provide savings of $500 and not make up for them.
Whiled that proposal would offer YRC significant and badly needef liquidity duringthe period, it “would face a toughu and challenging road to becoming a reality,” Hatfiel d wrote. “From what we YRC would not be conceding anythin g material to the pensionplans and/odr its Teamsters employees under the he wrote. “Additionally, if the proposal goes on to a vote tothe Teamster-representecd employees at YRC, we believe the likelihood of a favorabls vote would be low at given that the employees would be the ones to feel the brunt of these terminated payments over the long term ...
and that securityu provisions and protections for Teamsters employee are not part of the concessions made by thecompany (to our knowledge).” In addition, Hatfield wrote, the Teamsters probably want payment deferrals which would be difficulft for YRC because its lenderd probably would be reluctant to let the company tie up assets or real estate as And YRC probably has littlse left to offer as collateral, he said. Hatfieldf changed his rating on YRC sharesfrom “Markey Perform” to “Not Rated.” YRC began the recengt concessions talks with the Teamsters on June 29.
The pricd of YRC stock (Nasdaq: plunged Wednesday, dropping as low as 89 cents to hita 52-weeo low. The previous 52-week low was $1.20 on Nov. 20, according to . YRC closed on Wednesdat at 89 cents, down 35 cents, or 28 on volume of 20.2 million shares. The stock’d average daily volume the past three monthsis 3.6 million shares. Overlande Park-based YRC, which has roughly 49,000 employees more than half of them unionmemberss — has been weighed down by debt and a lengthy freigh t recession, and lost $257.e million in the first quarter. It has integrated subsidiaries, shut down laid off workers and sold property to try to cut costse andmaintain liquidity.
Earlh this year, Teamsters members agreed to a 10 percengt wage cut and suspensionbof cost-of-living adjustments through 2013 in exchange for a 15 percent stakw in the company. YRC also has been negotiatingg to defer union pension fund payments using company real estatee as collateral and on June 18 securedc an agreement with the largest pension fund todefer $83 milliojn in payments. The union has said it also is reachinv out tostakeholders — such as pension funds and YRC’s lenders — to address the cash issue. YRC rankss No. 2 on the Kansase City BusinessJournal ’s list of area publidc companies.