US loans YRC Worldwide $700 million, citing ‘national security’
US loans YRC Worldwide $700 Million, Citing ‘National Security’
July 1,2020 –JOC.com
YRC Worldwide will receive a $700 million COVID-19 relief loan from the US government, allowing it to avoid default on Teamster pension and benefits obligations that would have threatened employees’ coverage and perhaps the company’s survival. In announcing the loan Wednesday, the US Treasury Department said YRC’s survival is “critical to national security.”The CARES Act loan, which the less-than-truckload (LTL) company had been rumored to be seeking for weeks, also gives YRC additional funding to keep rolling through the recession, as rising costs and falling revenue squeeze the company’s finances. Some of the funding will be used for capital investment in tractors and trailers, YRC Worldwide said in a statement.