YRC Worldwide Achieves Agreement in Principle Restructuring Milestone

YRC Worldwide Inc. YRCW today announced that it had reached an agreement in principle, in the form of a non-binding term sheet, with certain of its key stakeholders providing for a comprehensive restructuring plan for YRC Worldwide. The term sheet was approved by those parties necessary to satisfy the "agreement in principle" condition in the company's credit agreement, including the Teamsters National Freight Industry Negotiating Committee of the International Brotherhood of Teamsters and a more than two-thirds majority of the lenders under the company's credit agreement. The non-binding term sheet provides YRCW with new and additional capital, a substantial improvement in its liquidity position, conversion of some of its debt obligations into equity and the replacement or restructuring of certain of its debt obligations. The term sheet contemplates a very substantial dilution of existing equity holders.