US - YRC Worldwide, a US-based trucking company, is finalising discussions with representatives of its defined benefit pension scheme to use its real estate as collateral, and suspend cash payments.
The potential transactions are part of the YRC's plans to address its financial performance and improve cash flow, as freight volumes reduce amid the recession, it said.
It is asking its lenders to allow for the release of specific real estate to secure deferred pension fund payments as an alternative to selling real estate, or entering into sale or leaseback transactions.
The YRC makes multi-employer pension contributions of $34-$45m a month, depending upon employment levels, which are also affected by freight levels and seasonal changes.
The YRC said in its filing that it "does not expect any agreed-upon transactions to impact the current or future benefits of employees participating in these pension funds."
The discussions involve the International Brotherhood of Teamsters, representatives of multi-employer defined benefit pension funds to which the YRC contributes, as well as JPMorgan Chase Bank, National Association, as the agent for YRC's credit agreement.
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