Zollars: Final step in restructuringShares in YRC Worldwide continued to fall Tuesday, a day after the struggling trucker detailed an exchange offer for its notes that would put debt holders in control of 95 percent of the company's stock.

Shares in the trucking company closed down 9 cents at $1.23. Still share were down by about 20 cents earlier in the day, so there appeared to be some steadier support by the closing bell.

The Overland Park-based company, which has been struggling with debt but managing to receive bank waiver after bank waiver, said the bond holders of USF 8 1/2% notes would exchange the notes for Class A convertible preferred stock that would represent 95% of the company's common stock on an as-if converted basis. The total face-value plus accrued and unpaid interest on the notes would be about $536.8 million.

The plan for an exchange offer was announced Friday, with the company saying it was the last piece of the puzzle that would put it on stronger financial footing, though admitting it would dilute current shareholders.

"This group understands our comprehensive plan and the long-term value of this company," Chairman and Chief Executive Bill Zollars said of the bond holders. "The completion of the note exchange is an important milestone in our plan, which is expected to improve our cash flow and capital structure."

If the swap is successful, YRC will get access to a $106 million revolver reserve and could stop paying interest and fees of about $25 million per quarter on its credit agreements.

YRC could raise also raise funds under a $200 million securities registration that it filed in May, Zollars said Friday.

But if the exchange fails, problems would remain, RBC Capital analysts doubted that success is imminent.

"Quite simply, we think that YRCW is down to the last bullet in its gun," the analysts wrote in a note reported in the Wall Street Journal. "Additionally, we continue to believe that the concessions granted it by its bank group and potentially other stakeholders are only acting to delay the inevitable."

The International Brotherhood of Teamsters endorsed the bank amendment Monday.

Moody's Investors Service and Fitch Ratings were critical of the plan Friday, with Moody's saying it would likely be a "distressed" exchange below face value of the notes and Fitch downgrading the company's issuer default rating one notch further into junk.

YRC had said Friday it anticipated "temporary downgrades" on its credit facilities but would see them tick back up in mid-December when the offer was expected to be completed.