News and briefs on trucking for Thursday, July 2, 2020:
YRC expects to receive $ 700 million loan under CARES Act
YRC in the world (n ° 5 on the CCJ First 250) announced Wednesday that the U.S. Treasury Department intends to lend the fleet $ 700 million under the CARES Act for assistance in the event of a COVID-19 pandemic. This comes in exchange for an almost 30% stake in YRC by the US government. YRC has struggled with debt and profitability issues since the 2008-2009 recession.
The fleet says it and its companies Holland, New Penn, Reddaway and YRC Freight “have been significantly affected by the COVID-19 pandemic.” YRCW plans to use the CARES Act loan to pay for deferred employee health and retirement costs and other contractual obligations, as well as to support capital investments.
The Treasury Department will receive a 29.6% fully diluted stake in YRCW for the loan. The company will receive the $ 700 million in two parts:
- The first amount of approximately $ 350 million will be used to cover short-term contractual obligations and certain other obligations, including retirement and health care payments. The terms of the loan are the London Interbank Offered Rate (LIBOR) benchmark interest rate plus 3.5%, consisting of 1.5% in cash and 2% in kind. This loan matures on September 30, 2024.
- The second tranche of approximately $ 350 million will be used for essential capital investments in trailers and tractors and is expected to bear interest at LIBOR plus 3.5% in cash. This loan also matures on September 30, 2024.
Small and Medium Fleet Focused Management System helps automate back office
A new transportation management system called ALVUS, from the Archerhub company (which operates a digital freight market), incorporates technology based on artificial intelligence to help automate accounting and back-office management operations for small and medium-sized carriers.
It includes a cloud-hosted shipment management platform designed to bring together the players in a business to execute the best possible shipping option, regardless of the location of the office and truck.
Nick Darmanchev, founder and CEO of Archerhub, hopes the system will help smaller carriers compete better with larger ones. Darmanchev himself is competitive in the fleet business and noted that he was “very aware of the challenges owner-operators face when they get bogged down in administration and processes. ALVUS was developed specifically to help streamline these processes.
ALVUS can automatically allow trusted drivers to issue their own Comcheck or EFS checks for a lumper through the driver’s mobile app. When the driver issues a Comcheck, the correct journal entry is recorded in the general ledger, freeing the accountant from entering a manual journal entry, while freeing the dispatcher to engage with the driver about the matter. lumper.
Automated billing features eliminate the need to spend hours matching BOLs and PODs to loads, and streamlined accounting and invoicing processes also save time and energy. Payroll functions can simplify processes for those employing drivers or rental owner-operators, and ALVUS integrates well with both DAT and Truckstop.com for automated truck stations – the system can be configured to display available capacity in advance to help secure loading opportunities.