YRC Worldwide Inc., a struggling U.S. trucker, delayed its earnings release scheduled for tomorrow amid talks on a new labor agreement that the company says is key to refinancing debt.
YRC, based in Overland Park, Kansas, plans to enter formal negotiation to extend the union labor agreement and “increase its competitiveness in the market,” the company said in a statement today. The developments resulted in the company postponing its earnings release to Nov. 12, YRC said.
Reaching an agreement with the union “will substantially increase the likelihood of a holistic refinancing solution to address the debt maturities in 2014 and 2015,” said Chief Executive Officer James Welch said in the statement.
Welch and Chief Financial Officer Jamie Pierson met with Teamsters leaders yesterday in Dallas to discuss the challenges for refinancing. An agreement would secure jobs for more than 26,000 union workers, Welch said in today’s statement.
YRC has $1.4 billion in total debt. About $396 million of debt matures next year and another $548 million is due in 2015, according to data compiled by Bloomberg. The company has posted annual losses since 2007.