(Adds Teamsters' statement; updates shares)
Jan 16 Shares of YRC Worldwide Inc
rebounded as much as 24 percent after the struggling trucker
said it was in talks with union leaders to revise a vital labor
YRC shares had lost nearly a third of their value since Jan.
9 when workers represented by the International Brotherhood of
Teamsters voted down YRC's offer to extend their contract.
An extension would have kept in place pay cuts and overtime
rates agreed to six years ago.
"We understand that simply re-voting the same proposal is
not an option," YRC Chief Executive James Welch said in a
statement on Thursday.
An agreement with the union, which represents 26,000 of
YRC's about 31,000 workers, is key to the restructuring of more
than $1 billion in debt. The first payment of $69.4 million is
due on Feb. 15.
"We have told the company that we are willing to consider a
modified proposal," the union said in a letter posted on its
Analysts have said YRC has a few more options if it fails to
reach a quick agreement with the workers, including working out
deferred payments with bankers.
"A favorable resolution (with Teamsters) prior to Feb. 15
remains within the realms of possibility," Moody's Investor
Service said on Tuesday.
YRC, with a market capitalization of about $139 million,
called off a meeting with bankers on Jan. 10 after 61 percent of
its Teamster union workers rejected the contract proposal.
The company, which has posted losses in nine of the past 10
quarters, is expected to report a loss of nearly $30 million for
the fourth quarter, according to Thomson Reuters I/B/E/S.
The Overland Park, Kansas-based company's shares were up 19
percent at $15.27 on the Nasdaq on Thursday afternoon.
(Reporting by Sagarika Jaisinghani, Sweta Singh and Mridhula
Raghavan in Bangalore)