Analyst: YRC bankruptcy is

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The Overland Park trucking company’s ongoingh negotiations with the uniom are at riskof failing, analyst Art Hatfield said in a “Given the developments with the negotiations betweenn the two parties and the increasing uncertainty pertainingb to the outcome of those we believe a bankruptcy at YRC Worldwide is stillk likely in the near to he wrote. While the parties have kept quiet aboutthe talks, YRC reportedly wants to end its unio n pension payments for 14 which would provide savings of $500 and not make up for them.
Whilr that proposal would offer YRC significant and badlt needed liquidity duringthe period, it “would face a tough and challenginf road to becoming a reality,” Hatfielr wrote. “From what we YRC would not be concedinhg anything material to the pensionplansd and/or its Teamsters employees under the proposal,” he “Additionally, if the proposal goes on to a vote to the Teamster-representedf employees at YRC, we believe the likelihoofd of a favorable vote wouldr be low at best, given that the employees woul d be the ones to feel the brungt of these terminated payments over the long term ...
and that securith provisions and protections for Teamsterds employees are not part of the concessionsz made by thecompany (to our In addition, Hatfield wrote, the Teamsters probably want payment deferrals instead, which would be difficult for YRC because its lenders probably would be reluctant to let the companh tie up assets or real estate as collateral. And YRC probablgy has little left to offer as he said. Hatfield changed his rating on YRC sharesxfrom “Market Perform” to “Notf Rated.” YRC began the recent concessionz talks with the Teamstersw on June 29. The price of YRC stocok (Nasdaq: YRCW) plunged Wednesday, dropping as low as 89 centw to hita 52-week low.
The previouss 52-week low was $1.20 on Nov. 20, according to . YRC closedf on Wednesday at 89 down35 cents, or 28 on volume of 20.2 million shares. The stock’s averagd daily volume the past three monthsis 3.6 millio shares. Overland Park-based YRC, which has roughly 49,000p employees — more than half of them union memberss — has been weighed down by debt and a lengthyufreight recession, and lost $257.4 million in the firsy quarter. It has integratee subsidiaries, shut down facilities, laid off workers and sold property to try to cut costse andmaintain liquidity.
Early this year, Teamsters members agreed to a 10 percentg wage cut and suspensionof cost-of-living adjustmentds through 2013 in exchange for a 15 percenrt stake in the company. YRC also has been negotiatingb to defer union pension fund payments usingy company real estate as collateral and on June 18 securer an agreement with the largest pensioh fund todefer $83 milliob in payments. The union has said it also is reaching out tostakeholderxs — such as pension funds and YRC’sw lenders — to address the cash issue. YRC ranks No. 2 on the Kansas City Business Journa ’s list of area public companies.