YRC Worldwide sets rules for voting on stock issue

AP News
Posted: Jan 05, 2010 12:42 PM

Troubled trucking operator YRC Worldwide Inc. says shareholders as of Monday will get to vote on a stock plan related to the company's recent debt-for-equity swap.

Shareholders will vote on a proposal to increase authorized shares, reduce their par value, launch a reverse stock split and then proportionately reduce the number of common shares.

The company said Tuesday it will file a preliminary proxy with the Securities and Exchange Commission detailing the proposal up for vote at a special shareholder meeting. The date of the meeting hasn't been set.

The stock plan, which requires a change in the company's certification of incorporation, is related to its recently completed swap of stock for $537 million in debt. YRC told bondholders if they didn't swap their debt for stock, the company might need to seek bankruptcy protection from creditors.

YRC, based in Overland Park, operates trucks under Yellow, Roadway and New Penn names. Trucking companies were hit hard by the recession, which reduced demand for shipping goods. YRC was also saddled with debt from an integration of two business units. It has sold real estate and cut thousands of jobs to keep operating.

Shares fell 7 cents to 65 cents in morning trading.