Jeffrey Altman’s Owl Creek Asset Management trimmed its common stock holding in YRC Worldwide Inc. (YRCW) from 172 million shares to 75 million shares. Owl Creek Asset Management is YRCW’s large insider and shareholder. Owl Creek Asset Management began to sharply cutting its position since Sep 16th when YRCW approved its final restructuring step. Based on the form 4 filings, Owl Creek did 7 large transactions and sold nearly 97 million common shares in total. The weighted average price was $0.073 per share.
According to Owl Creek’s latest passive 13G filing on Sep 26th, the firm now retains 17.4% ownership of YRCW, including 75 million common stocks, nearly 22 million shares of Common Stock issuable upon conversion of $13,507,650 in aggregate principal amount of Series B Notes, and 94 million shares of Common Stock issuable either as Make-Whole Shares or upon conversion of the PIK Notes.
Besides Jeffrey Altman’s Owl Creek Asset Management, Stephen Freidheim’s Cyrus Capital Partners declared their activist position in YRCW on the same day. Cyrus now reveals 448 million shares, or 20.3% stake in YRCW.
Back to the second quarter, YRCW was owned by five hedge funds, including Jim Simons’ Renaissance Technologies, and Randall Smith’s Alden Global Capital. These two hedge funds each took 302 thousand shares and 204 thousand shares respectively.
Owl Creek Asset Management, L.P. invests in the public equity and fixed income markets, including Healthcare, Financial, Technology, and other sectors. The firm implements a distressed equity strategy along with a capital-structure arbitrage strategy as hedging techniques. The firm had a 13F portfolio of more than $6 billion at the end of Q2.
YRC Worldwide Inc. is a transportation service firm which provides transportation of industrial, commercial, and retail goods. The firm underwent a charter amendment merger on Sep 16th. James Welch will be YRC Worldwide CEO, and Jeff Rogers will be YRC President and Mike Naatz will be Holland President.