NEW YORK, June 12 (Reuters) - U.S. trucking company YRC Worldwide Inc (YRCW.O) has decided not to apply for money from the U.S. government’s bailout program, but instead will push for federal reform to help cope with pension problems.
YRC, based in Overland Park, Kansas, won’t submit an application with the Treasury Department under the Troubled Asset Relief Program, and instead will focus on long-term pension reform, company representative Suzanne Dawson said on Friday.
Last month, YRC said it planned to seek $1 billion in bailout money under TARP to help it cover pension obligations, a move analysts at the time said was unlikely to succeed as the company has no financial charter.
YRC, which has been shedding jobs and closing facilities to cut costs in the face of the U.S. recession, faces an estimated $2 billion in pension obligations over the next four years.
In April, YRC received approval from its creditors to use real estate as collateral for the $30 million to $35 million a month the company says it needs to pay to meet its pension obligations.
Reporting by Ilaina Jonas