YRC Worldwide (YRCW) stock plunged after shareholders agreed to increase the trucking company’s share count to 1.9 billion from 48 million, a massive dilution of exiting shareholders. The increase is part of the company’s restructuring plan to avoid bankruptcy.
Shares dropped 74% to 8 cents.
Of course, when your stock is trading at 8 cents, it tends to signal to the market that the risk of bankruptcy is very high. The company plans to conduct a reverse split this December or January to boost the price over $1, Chief Financial Officer Jamie Pierson toldDow Jones.