(Reuters) - YRC Worldwide Inc (YRCW.O) plans to apply for $1 billion in federal bailout money, the Wall Street Journal reported, citing the trucking company's chief executive William Zollars.
The company wants the funds to help cover the cost of its estimated $2 billion pension obligation over the next four years, the paper cited Zollars as saying.
About half of YRC's contributions to a multi-employer union pension fund cover the costs of retirees who never worked for the company, according to the paper.
Zollars told the paper that by applying to the U.S. Treasury for money under the Troubled Asset Relief Program, he hopes to "get the conversation started" with federal authorities about reducing the company's pension obligations.
YRC will submit an application to the Treasury as early as Friday, Zollars told the paper.
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