Kansas-based YRC Worldwide Inc., the trucking conglomerate with a significant midstate presence, has asked its lenders to amend credit agreements to give the company more wiggle room to meet financial requirements.
YRC is seeking amendments to the credit deals that would reduce compliance thresholds on three key metrics, saying that since October it has exceeded its forecasts and continues to make progress in the company's financial turnaround, according to a filing today with the U.S. Securities and Exchange Commission.
The reduced requirement requests include:
The metrics are ways for institutional lenders to gauge a company's ability to pay interest on loans and the company's overall ability to meet financial obligations, according to Investopedia.com.
Representatives for YRC did not immediately respond to requests for comment.
As of Dec. 31, YRC's total debt was more than $1.35 billion. The company has been selling assets and noncore businesses to streamline operations. Analysts have said the company still is a long way from recovery, but new management is helping to right the ship.