Dilution Imminent for YRC Worldwide (YRCW) - Analyst

CRT Capital commented on YRC Worldwide Inc. (Nasdaq: YRCW), saying dilution is imminent.

The firm commented, "On September 16, 2011, YRC's most recent out-of-court financial restructuring is likely to receive final approval from the Company's common shareholders, at which point, YRC’s Series B Preferred Shares will automatically convert into 1.9 billion common shares. YRC's existing common shares continue to trade at levels (Intraday: $0.39) well above our valuation ($0.05); as well as the valuation implied by the trading levels of the Company's Series B Preferred Shares and Series B Notes ($0.07). Although we view a YRC asset coverage calculation as a largely theoretical exercise, it appears to us that, as of June 30, 2011, the Company's: (1) new Term Loan and ABL Facilities were reasonably well secured and (2) the Series A and B Notes are only partially secured."

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