YRC Stock Down 62% After Approval Of Share Boost PlanLast update: 9/16/2011 12:36:58 PM
By Bob Sechler
Of DOW JONES NEWSWIRES
Shares of YRC Worldwide Inc. (YRCW) plummeted 62% Friday after shareholders at a special meeting approved a measure substantially increasing the number of authorized common shares as part of the struggling trucking company's financial restructuring. YRC previously had warned that the restructuring, which included the issuance of preferred shares expected to be quickly converted into common shares, would dilute existing common shareholders almost entirely, leaving them with 2.5% of the company. Still, YRC stock hadn't completely reflected the dilution since the company announced July 22 that its lenders had approved its restructuring. The shares closed at $1.03 that day and hovered around $1 for most of the next week. They were trading recently around 12 cents, down 62% from Thursday's close at 31 cents. Earlier Friday, the shares fell to 7 cents. YRC, based in Overland Park, Kan., had described bankruptcy as likely its only option if the restructuring didn't go through. -By Bob Sechler; Dow Jones Newswires; 512-258-1690;
bob.sechler@dowjones.com (END) Dow Jones NewswiresSeptember 16, 2011 12:36 ET (16:36 GMT)
