YRC Worldwide misses restructuring milestone, warns of bankruptcy potential

March 15, 2011

YRC Worldwide misses restructuring milestone, warns of bankruptcy potential

by David Twiddy

YRC Worldwide Inc. has missed a key deadline in its restructuring process and again is in danger of having to file for bankruptcy protection.

In its annual report, filed late Monday with the Securities and Exchange Commission, the Overland Park-based company (Nasdaq: YRCW) said a “milestone failure” had occurred last week and that its lenders could declare the company to be in default on its credit agreements.

“The required lenders have not indicated that they intend to declare an event of default under the credit agreement, and we are continuing to work with the parties,” YRC wrote in the filing. “We cannot provide any assurance that the required lenders will not declare an event of default under the credit agreement. If the required lenders declare an event of default under the credit agreement, we anticipate that we would seek protection under the U.S. Bankruptcy Code.”

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