YRC Worldwide (YRCW) could be delisted from the Nasdaq (NDAQ) if it goes through with exchanging some outstanding debt for new equity, as well as issuing new equity to the International Brotherhood of Teamsters as part of a restructuring package which is designed to keep the company from filing bankruptcy. The trucking firm said in an S-1 Filing with the U.S. Securities and Exchange Commission, that is looking for an exception to the listing rules, but there’s no certainty it will get it.
“[A]bsent an exception to the NASDAQ listing rule requiring shareholder approval prior to the issuance our new preferred stock [the flood of new shares will result in very significant dilution to YRC’s current common shareholders], Series A Notes and Series B Notes, our common stock will be delisted if we consummate the exchange offer,” the company said in the Tuesday filing. “We intend to apply to the NASDAQ for a waiver of the shareholder approval rule under the financial viability exception. However, we may not receive this waiver. Our common stock may also be delisted if it does not maintain a minimum trading price of $1.00 per share over a consecutive 30-day trading period.”
The Overland Park, Kansas-based company also said it agreed to use commercially reasonable efforts to cause the listing of its common stock on at least one of the New York Stock Exchange, AMEX or NASDAQ as soon as practicable following consummation of the exchange offer.
YRC lost 23% to $0.86 at 11:56 am E.T. in Nasdaq composite trading. YRC shares closed Wednesday at $1.13.