July 20, 2020 / 8:18 PM / 19 days ago

U.S. congressional body questions $700 mln loan to YRC Worldwide

July 20 (Reuters) - The U.S. Congressional Oversight Commission on Monday questioned the Treasury Department’s decision to designate trucking company YRC Worldwide Inc as critical to national security and lend it $700 million.

The company’s shares plunged about 28% during regular trading after the committee also said the move risked the loss of U.S. taxpayer money.

Earlier this month, YRC said it would give the U.S. government a 29.6% stake in exchange for a $700 million loan, tapping into a $17 billion bailout fund originally intended for defense contractors such as Boeing Co.

The committee said in a report bit.ly/32GQee7 YRC did not meet the Treasury's eligibility criteria and apparently did not perform under a high-national priority defense contract or a top-secret security clearance.

YRC did not immediately respond to a request for comment.

The report also said that YRC was qualified under a catch-all provision created by the Treasury based on a recommendation and certification from the Secretary of Defense or the director of National Intelligence. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel)

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