Shares of major U.S. trucking company YRC Worldwide plummeted 64 percent on Monday after the company revealed a survival plan that may lead to the issue of a massive number of new shares.
Overland Park, KS-based YRC said in a Monday release that it has a plan for viability in the form of a debt-exchange offer, which would see bondholders own 95 percent of the company. Analysts are saying it could work, but current shareholders would be “screwed” by the dilution of shares.
Around 3 p.m. Monday, YRC’s stock was trading at $1.32, down $2.33 or 64 percent, according to Yahoo Finance.
The nation’s No. 1 less-than-truckload carrier has been struggling to stay out of bankruptcy.