This is a good case of how not to close down a firm something YRC can take a lesson from if and when they have to go Chapter 7 early next yearYRC hasnt quite got enough support from its bondholders to do its debtforequity swap and is extending its deadline for completion of the swap to next Monday December 28th DDay is New Years Eve when a big bond interest payment is due Thats only a week from nowYesterdays Arrow Trucking closure leaving truckers left out in the cold two days before Christmas might be a foretaste of what might happen with YRC a nice story from today had Schneider volunteering to give Arrow drivers a ride towards home YRC should take note of how not to do things but they may have nearly as abrupt a crash for they will strive to make things look at normal as possible in hope of turning things around before pulling the plugIf you have YRC as one of your LTL shippers you might be advised to find alternative shipping after the 28th for your loads might get caught up in any shutdown that might come Folks like FedEx and UPS are in position to pick up the slack as are other LTL carriers but taking all of Yellow and Roadways business will be a challengeIn the shortterm a YRC Chapter 7 will be good for the industry as theyll be off the market while they go through liquidation and freight prices will go up However the long term will also see all those YRC trucks and truckers looking for a place to light in the industry that will depress wages in the trucking industry lower the price of used trucks and possibly encourage new owneroperators to enter the marketThats likely why the Teamsters are steamed and are looking for a good scapegoat they are after the creditdefault swap market and are asking for a federal and state investigation Bondholders with default insurance may want to see YRC go down and get 100 on the dollar
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