Solus Alternative Asset Management Goes Activist on YRC Worldwide (YRCW)

Christopher Pucillo and Solus Alternative Asset Management are bullish about YRC Worldwide, Inc. (NASDAQ:YRCW). In a recent filing with the Securities and Exchange Commission, Solus Alternative has disclosed the ownership of 614,377 shares. In their latest 13F filing, Solus reported ownership of  739,853 shares, which were later disposed of. The fund’s current position was built through the conversion of Series A and Series B notes. Solus’ current stake accounts for 5.32% of the company’s common stock.

Christopher Pucillo has also gone activist on YRC Worldwide, Inc. (NASDAQ:YRCW). According to their filing, Solus have required additional meetings with the management of the company to discuss financial and liquidity  issues and ways to improve YRC Worldwide’s financial situation.

Another fund that is betting big on YRC Worldwide, Inc. (NASDAQ:YRCW) is Avenue Capital, run by Marc Lasry. During the third quarter of 2013, Lasry has increased his fund’s holding of YRC stock by 125% to 549,881 shares, reportedly worth $9.3 million.

YRC Worldwide offers transportation services mainly in North America. The company has a market cap of $94 million and the stock has a beta of 3.20, which makes it a very volatile one. YRC Worldwide does not pay a dividend. For the third quarter of 2013, the company reported revenues of $1.25 billion and a loss per diluted share (EPS) of $4.45. James Welch, YRC Chief Executive Officer, commented:

Third-quarter performance was hindered by declines in service, manpower shortages, and declines in yield.

Analysts expect the company to perform better during the current quarter and expect YRC Worldwide to post revenues of $1.18 billion and  a loss per share of $2.70.

Disclosure: none

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