Hoffa Hails Today's News, Vows Continued Effort To Keep Members Working
WASHINGTON, April 29, 2011 /PRNewswire-USNewswire/ -- The restructuring plan to protect 25,000 Teamster freight jobs at YRC Worldwide, Inc. (YRCW) has cleared an important hurdle and remains on track to be completed in July, Teamsters General President Jim Hoffa announced today.
The Teamsters National Freight Industry Negotiating Committee (TNFINC), along with lenders and the Teamster multi-employer pension funds, has entered into definitive agreements to move forward with the planned restructuring of YRCW. With the support of more than 95 percent of the senior secured lenders, 100 percent of the pension funds and 100 percent of the existing ABS lenders, this vote clears the way in moving the restructuring forward to close as planned in July.
"Saving the jobs of our 25,000 freight members at YRCW remains our number one priority so we welcome this news today," Hoffa said. "These agreements and the support of the company's primary stakeholders represent a significant step forward in the company's restructuring plan and help to assure the continued momentum of the transaction. We will continue to be involved every step of the way to make sure this plan is completed and our members continue behind the wheels and on the docks."
Following an extensive diligence review by independent financial advisors and attorneys and negotiations among the company's various stakeholders, these agreements provide the details of the restructuring plan set forth in the Agreement in Principle (AIP) that was announced February 28. TNFINC's goal for the AIP was to achieve the best benefits and terms possible for Teamster YRCW members.
As previously stated in the Teamster's February 28 press release, the restructuring will help address key provisions of the TNFINC Restructuring Plan/MOU by providing significant liquidity to YRCW, including $100 million of new capital and increased liquidity from a new asset-based loan (ABL) facility. Additionally, the restructuring will reduce company debt to help pave the way for a healthier YRCW going forward.
Pending the union's continued review and support of negotiations and documentation going forward, the transaction is on track to close no later than July 22, as previously announced.
"We are pleased that we have cleared another hurdle in our fight to protect our members' jobs," said Tyson Johnson, Director of the Teamsters National Freight Division and International Vice President. "General President Hoffa and I will continue to work with all the local unions and all our freight members to get through this difficult period."
The International Brotherhood of Teamsters was founded in 1903 and represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico.
SOURCE International Brotherhood of Teamsters