In the report the company indicated a "milestone failure" had occurred March 10 and that lenders could declare the trucking company in default under a non-binding credit agreement. Multi-employer pension plans were seeking higher interest rates on deferred pension obligations -- more than what was acceptable to other credit agreement lenders.
A memo to employees emphasized that the pension plans were just part of the restructuring plan and that lenders have not indicated they will declare a default.
A memo to employees emphasized that the pension plans were just part of the restructuring plan and that lenders have not indicated they will declare a default.
In recent months YRC has negotiated 3 rounds of concessions with the Teamsters Union which represents about 25,000 company employees, many of whom are still on lay off. The restructuring plan intended to convert the trucking company's heavy debt load to ownership to the union and to lenders.
