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Last week, the largest U.S. trucking company requested $1 billion (yeah, with a B) in bailouts from the federal Troubled Asset Relief Program. Specifically, YRC is looking for help in covering their financial obligations to the troubled Central States multi-employer pension fund.
It’s a move analysts say is an attempt to gain approval for YRC to use real estate assets as collateral for their pension obligations. While the company gained approval from creditors to back their pension payments with real estate holdings, they still need approval from the Central State fund.
Analysts also say this request shows how desperate YRC is for cash.
Whatever the reason for the request, it is a move that weighs heavily on the industry. Reaction from truckers around the web has been mixed, garnering some strong reactions and raising questions about how bailouts work and what this move means for the industry.
We’d like to hear from you. What do you think about YRC’s billion-dollar bailout request? How does it affect you and your career? What will happen to the industry — and to you — if YRC fails?
Tell us what you think in the comments below.
Comments
this is more stupid thinking
YRC Bailout
Big companies driving down rates
YRC Bailout
Who's got ya money baby.
Bailout for YRC? No more
TARP
Re: Driving down rates.