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.
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TARP
No one is going to bail me out thats the risk of doing business. We should have let the banks go down, judging by the million dollar junkets these people have no idea of the real way of life.
The same is true of the federal government and some state governments like CA who seem to be controled by people whose incompetence has no boundary. to much lobbying and not enough common sense in both parties.
It was interesting to note that when the stock market fell the price of fuel went down all caused by the rich hedge funds not being able to buy oil futures but as soon as we bail them out and stocks rise so does fuel. So much for all those who say supply and demand.
Lets face it we are sunk.
Bailout for YRC? No more
Bailout for YRC? No more bailouts to mismanaged companies that will probably go under and take America's money with them. It's suicidal blood letting for the American People. Why endanger our nation any more than it is. We're already on the edge of financial disaster with all the previous bailouts, those communists in the congress and especially the white house. They're communists performing a power-grab and the American public is falling for it. Let YRC go under and hopefully take the bloodsucking, extortionist Teamsters with them.
Who's got ya money baby.
That's what happens when people cut rates to get work then oh Mr. Obama I need some money. Piss on the hundreds of owner operators that they put out of business in the process.
Big companies driving down rates
It seems to me that these large trucking companies have been partly responsible for driving down rates and putting a lot of small, independent truckers out of business. It's good to know that they can not actually run a viable business at these rates. There are plenty of truckers in the business. The shake out of one large company is not going to adversely affect the business and the ability to ship freight. Why would they get a bail out?
Re: Driving down rates.
Re: Driving down rates. Some of these large companies ARE responsible for driving down rates and they will go under if they continuously haul for less than what it cost. They shouldn't get a bailout because historically when one of the big companies go out, freight rates adjust upward and we all get a raise. That's when I call the shipper and say, "I told you so! I told you it cost x to haul that load so just pay me x so you don't have to worry about this." My rates never go down. If a shipper call me and says xyz company will do it for this (cheaper), I'll let them and go find something else to do. Usually within four or five months the shipper is calling me back, crying that the load fell off so-n-so's truck or that company went out of business.
YRC Bailout
No taxpayer bailouts for any more mega companies. As these companies crash and burn opportunities for small business will open up that were previously denied to them due to the predatory business practices of large corporations. IF THEY HAVE FAILED, LET THEM CLOSE THEIR DOORS.
this is more stupid thinking
this is more stupid thinking runnig wild,the social support from goverment is killing the amercian dream
YRC Bailout
We are a small company (25 trucks) that has hit rough times with the economy and the car plants shutting down for 90 consecutive days. If it looks like we will not survive where would we get the forms to ask for the free bailout money? I believe it is time to suck it up and do what you need to do to survive. This has got to end somewhere it might as well start with YRC.