YRC Worldwide (NASDAQ: YRCW) announced it expects to receive a $700 million loan from the United States Department of the Treasury under the CARES Act.
The largest less-than-truckload (LTL) carrier has been facing mounting financial pressure amid the pandemic to fund obligations to its 30,000 employees. The company is delinquent in making health and welfare as well as pension payments to funds that support its union and non-union employees.
The press release said the company plans to use the money to make the deferred benefits payments to satisfy their obligations.
"We would like to thank Congress for passing the CARES Act and the U.S. Department of the Treasury for providing this vital funding which recognizes the essential role YRCW plays in the nation's supply chain. Through our work with over 200,000 customers, including being a leading transportation provider for the Departments of Defense, Energy, Homeland Security, and Customs and Border Protection, YRCW's freight professionals have developed a deep understanding of, and expertise in, the importance of a secure and reliable supply chain," said YRC CEO Darren Hawkins.
This is a breaking news story. Check back at freightwaves.com for additional updates.
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