(Reuters) - Trucking company YRC Worldwide Inc (YRCW.O) and the Teamsters union reached a tentative deal for a new labor contract that sets the stage for the struggling company to push ahead with a refinancing plan.
YRC shares rose 22 percent in extended trading.
The revised proposal would be reviewed at a meeting of local union officials on January 21 and would have to be ratified by union members, the International Brotherhood of Teamsters said in a statement.
The 26,000 YRC members represented by the union had last week voted down a proposal by the company to extend their labor contract.
That vote put in jeopardy efforts to refinance the company’s debt, more than $1 billion of which will start coming due in February.
YRC said on Friday that the tentative agreement, which comes a day after the company restarted talks with the Teamsters, addresses concerns raised by the union and contains a number of revisions to the earlier proposal.
”The outcome of this week’s discussions is critical to the future of the company, YRC Chief Executive James Welch said in a statement.
Welch said the deal to extend a collective bargaining agreement to March 2019 was ”the best - and only remaining - path forward.
Shares of the company were trading at $18.94 after the bell. They closed at $15.82 on Friday on the Nasdaq.
Reporting by Rohit T. K. in Bangalore; Editing by Anthony Kurian