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YRC makes deal with lenders to reset loan terms

OVERLAND PARK, Kan. (AP) -- YRC Worldwide Inc. said Monday that it reached an agreement with its lenders to reset certain financial requirements in its loans and allow the struggling trucking company to keep all the money from property auctions.

YRC said all its lenders agreed to alter their loan agreements. Its stock gained $1.24, or 19 percent, to $7.70 in midday trading.

Over the last several quarters, the company's new leadership team has made deals to get rid of its truckload subsidiary, sell a big portion of its excess real estate and divest one of its Chinese joint ventures.

"We appreciate the support of our lenders and believe that these amendments affirm their confidence in our ongoing initiatives, their trust in the leadership and the future of YRCW," said Chief Financial Officer Jamie Pierson in a statement.

Besides selling real estate, the company cut wages and delayed debt payments over the last several years to avoid bankruptcy following a sharp downturn in freight demand and an onerous integration of business units.

YRC Worldwide has one of the largest less-than-truckload networks in North America and is the holding company for YRC Freight, YRC Reimer, Holland, Reddaway and New Penn.