Struggling trucking company YRC Worldwide Inc. (YRCW) continues to suffer from one setback after another. In its annual report, management declared that it missed a major restructuring milestone in the first week of March 2011.
This may prompt the company’s lenders to declare YRC Worldwide as a defaulter in its credit agreements. If this actually happens, the company has to seek protection under the bankruptcy law. During the last two and half years, YRC Worldwide is reeling under possible bankruptcy due to a significant fall in freight volume coupled with its highly leveraged balance sheet.
Although the trucking industry is recovering from recession, YRC Worldwide fails to cope with this current recovery. The company’s viability depends on its ability to become profitable but unfortunately, we do not expect the company to reach that stage anytime soon. We are downgrading our recommendation to Underperform.
YRC WORLDWD INC (YRCW): Free Stock Analysis Report
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