* Delta Air will replace YRC in transport index
* YRC’s restructuring is cited
By Carey Gillam
OVERLAND PARK, Kan., Dec 8 (Reuters) - U.S. trucking giant YRC Worldwide (YRCW.O) will be deleted from the Dow Jones Transportation Average, Dow Jones Indexes, a leading global index provider, said on Tuesday, citing YRC’s broad financial restructuring and potential for a bankruptcy filing.
YRC will be deleted at the close of business on Friday, Dec. 11, and replaced by Delta Air Lines Inc (DAL.N).
Dow Jones said YRC was being removed because it is seeking a proposed a debt-for-equity swap that would give noteholders control of about 95 percent of the company’s common stock.
“If not enough bondholders agree to the exchange, many observers expect that YRC Worldwide Inc could file for bankruptcy protection, which disqualifies a stock from being a component in any of the Dow Jones averages,” Dow Jones said.
YRC Worldwide has been in the Dow Jones Transportation Average since Aug. 8, 1995. The company was named Yellow Roadway Corp before it changed its name to YRC Worldwide on Jan. 4, 2006.
The Dow Jones Transportation Average tracks 20 U.S. transportation stocks. It includes Burlington Northern Santa Fe Corp BNI.N, Continental Airlines Inc (CAL.N), Con-way Inc CNW.N, CSX Corp CSX.N, FedEx Corp (FDX.N) and others.
YRC is the nation’s top less-than-truckload (LTL) carrier. It has been struggling to stay out of bankruptcy, laying off thousands of workers and cutting deals with labor and lenders to stay afloat.
YRC’s tender offer to bondholders expires today. The debt-for-equity swap would eliminate more than $500 million of debt from YRC’s books and provide it with fresh liquidity to continue its efforts at restructuring.