YRC Worldwide Enters Stakeholder Agreements To Support Restructuring Plan.

YRC Worldwide announced it has entered into definitive agreements with key stakeholders providing for their support of a restructuring plan.

According to a release, the company reported that more than 95 percent of the senior secured lenders have now approved the restructuring documentation, as have 100 percent of the company's multi-employer pension funds, along with the International Brotherhood of Teamsters, and 100 percent of the lenders under the company's asset-backed securitization facility, in each case subject to the terms and conditions contained in the agreements.

"When we announced the non-binding agreement in principle in February, we noted that our primary objective was to achieve a comprehensive restructuring with a solid foundation for long-term success," said John Lamar, chief restructuring officer and lead director of YRC Worldwide. "With these agreements, we believe that foundation is now in place, and we remain on target to close the restructuring in July."

Officials noted that the restructuring plan set out in the definitive agreements anticipates an infusion of $100 million in new capital, as well as increased liquidity from a new asset-based loan facility, replacing the current ABS facility. In addition, the restructuring plan contemplates that a portion of the company's existing loans and other obligations will be exchanged for new securities, including the exchange of some obligations for equity. This is expected to be accomplished by a series of transactions to be completed in July, and would result in the company's existing shareholders holding approximately 2.5 percent of the company's outstanding common stock, subject to further dilution by a management incentive plan and the conversion of certain new securities.

"We sincerely appreciate the support given to YRC Worldwide from our lenders, the pension funds and the Teamsters," added Lamar. "With our stakeholders having shown their confidence in the company by executing these definitive agreements we look forward to completing the restructuring as we have previously announced."

YRC Worldwide will hold a conference call for the investment community on Friday, May 6, beginning at 9:30am ET, 8:30am CT. First quarter earnings will be released the same day, Friday, May 6, prior to the opening of the market. The call will be open to listeners live and by recorded playback via the YRC Worldwide Internet site yrcw.com.

YRC Worldwide is a provider of transportation and global logistics services.

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