YRC Worldwide gains premarket after pension deal (YRCW)

Posted in General, pre-market 
June 18th, 2009

Trucker YRC Worldwide’s shares are up more than 3% on volume of more than 50,000 shares after it reached an agreement with several of its pension funds that will let the company use its real estate as collateral in lieu of making second-quarter pension contributions.

The announcement may have been somewhat anticipated by the Street, but it removes an obstacle it had faced from the Teamster’s union. The company needed to reach an agreement with the union to defer pension payments, as it hadn’t made payments to Teamster pension plans in recent months. The company was able to amend its credit facility last month in an effort to address liquidity concerns.

 

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