Tuesday, December 22, 2009

Beware the Taxpayer Bailout of Underfunded Teamsters Pension Funds

This was going to be a "quick" post on the pending bankruptcy of YRC, the nation's largest trucking company.

Instead, I have been digging around for several hours as the story morphed into a spiderweb of pension obligations culminating in a Ponzi scheme sponsored by representative Pomeroy to bailout private pension plans at taxpayer expense.

Let's kick this off with the headline that first grabbed my attention.

Bloomberg reports YRC Has Until Yearend to Corral Bondholders, Avert Bankruptcy. http://www.bloomberg.com/apps/news?pid= ... kPU.MsW.xg

YRC Worldwide Inc. has less than two weeks to persuade bondholders to accept a debt exchange and prevent a bankruptcy filing that its employees’ union says may force the biggest U.S. trucking company to liquidate.

YRC, which has pushed back the deadline for the swap three times this month, must complete the tender by Dec. 31 to avoid a $19 million payment of interest and fees that would leave the trucker in an “unsustainableâ€