I apoligize...I am wrong. However, the private borrowing of that money was mostly used to pay off the holdout USF notes. Better interest on the new notes that can be turned into common stock at the bond holders discretion. They retired 50m in debt by the bonds, adding about 20m in debt. Still doesn't make their debt ratio worse.
That 70m was not borrowed...it was another hammering of the stockholders. They exchanged common shares and agreed to hold off the reverse split for 2 months. NO NEW DEBT. Again, I am not here boasting that YRCW is doing wonderful things, as they are in trouble. I am just keeping people like Ken honest when stating facts....and when he says they have a worse ratio of debt from last year he must be corrected. Simple
My logic is based on concrete evidence. YRC's balance sheet is the objective proof I need to draw the conclusion the cannot survive. You (and many others) blame the economy for YRC's demise. Guess what? The other carriers that compete directly with YRCW is operating in the same economy.
My involvement with customers in our business and the few supervisors and sales people I talk to at YRCW companies is the subjective evidence I get to make me believe the company can no longer compete effectively.
When YRC closes the business they had will go to other carriers. Those companies will need to bring back workers they have on layoff and probably hire some extra people. The companies themselves will become more profitable and will begin to further invest in their business. It's a win-win for everyone.
you are ate up, theres alot of people who will disagree with you. they are not dragging any other carrier down, if they go down its because of lost freight not yrc. your logic is wrong, plain and simple, and who are you to care about what hurts other carriers, what about these 40k families. you logic is out in lala land
Nick, What about the $70M they just had to borrow to pay down bondholders who did not accept the debt-for-equity swap? That's seems to be a pretty good example of borrowing with one hand to pay off the other.
Whate are you talking about?
YRCW doesnt cash flow - Even Zollars admits in Q1 they will be negative - again. Thus of course they will tap the remaining $160 mm, I figure the will use about $80 mm in Q1. Plus don't forget the roughly $40 mm - each month - for the pension deferral - so combined that's around another $200 mm of borrowings in Q1 alone.
If you include the $548 mm of LOC's outstanding,(YRCW cannot survive without them) this gets you very close to $1.9 billion of debt at the end of Q1.
To my knowledge they haven't borrowed any amount of money with their so called "left hand". They were granted access to the other 160m of the revolver which they haven't tapped yet. What new debt are you referring to? I believe you are dancing Ken. Stand firm and tell me the new debt they borrowed?
current secured debt...$1.3 billion....balance on revolver $762 million...
how in the hell can you say they are debt free...
they are in a serious negative cash flow situation...debt free not even close!!!
Definitely not debt free, but CERTAINLY not in the predicament some of you guys think they are.
There's really no such thing as a major corporation operating without debt. As a matter of a fact, it's almost criminal not to leverage yourself to create wealth.
You guys talk as if you're running a couple of trucks out of a storage unit.
Their debt is manageable.
also the revolver is exausted there is no more money from the banks there is however 70 million from an unknown source and 85 million in tax returns.
That is just about enough to operate one more quarter.
Zollars and company have to get the OR down or the operating income will vanish.
YRC MUST make a profit in order to pay its bills .