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YRC Worldwide shares dive on fears of union vote defeat
January 9, 2014 / 4:50 PM / 4 years ago

YRC Worldwide shares dive on fears of union vote defeat

(Reuters) - Shares of struggling trucker YRC Worldwide Inc (YRCW.O) fell as much as 24 percent on fears that the Teamsters union will reject the contract extension of about 26,000 workers, jeopardizing the company’s plans to restructure its debt.

“The ballots opened and stacked so far indicate that the proposed contract extension may well be going down to defeat,” the Teamsters for a Democratic Union website said.

YRC Worldwide, which had over 31,000 workers as of February 2013, pushed back refinancing talks with the bankers by a day to Friday, Thomson Reuters’ RLPC reported without naming sources.

The result of the vote is expected by the end of Thursday, a statement on the Teamsters union website said. (r.reuters.com/ban85v)

The company did not comment on the share movement. The union said they would not comment on the vote till the counting was complete.

YRC Worldwide, which was on the verge of bankruptcy in 2011, has to start repaying debt of more than $1 billion from February.

The Overland Park, Kansas-based company wrote off $300 million in debt in December to meet a primary requirement for the union’s ratification of the vote.

The company’s shares had more than doubled to Wednesday’s close since the company said on December 9 it expected annual savings of up to $100 million if union members voted to extend the contract.

There would be no cuts in existing employees’ wages or their health and pension contributions under the proposed contract, the company had said.

Shares of YRC were down 11 percent at $16.56 in late morning trading.

Reporting by Sweta Singh in Bangalore; Editing by Don Sebastian

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