An auction for Yellow Corp.’s terminals hasn’t ended yet, a Delaware court filing revealed late Friday.
The auction for the bankrupt company’s less-than-truckload terminals began Tuesday morning, with an expectation that winning bids would be revealed Friday. The court document said it may now be Tuesday (Dec. 5) before the new owners of the service centers are made public.
Yellow operated roughly 300 terminals before it ceased operations at the end of July. Some of its property leases have already been terminated. However, parties interested in its more than 170 owned terminals were required to have their bids in by Nov. 9.
Less-than-truckload carrier Estes’ $1.525 billion stalking horse bid was named as the winning bid for the facilities in late September. That offer set the price floor for the current auction process.
What remains to be seen is the status of a going concern bid led by Jack Cooper Transport’s Executive Chair Sarah Amico.
The offer was reported to include $1.1 billion in new debt to pay off secured lenders and the hedge funds providing bankruptcy financing as well as $1.5 billion in preferred equity to satisfy claims from unsecured creditors. The linchpin for Amico’s offer, however, would require the U.S. Treasury to extend the maturity of a $700 million Covid-relief loan by two years from September 2024.
The plan received the support of nearly a dozen senators as well as the International Brotherhood of Teamsters, which represented roughly 22,000 of Yellow’s 30,000 employees. However, Treasury has been reported to be weighing its options of potentially rescuing some of those jobs against its fiduciary obligation to taxpayers, which would be made whole under the current Chapter 11 liquidation plan.
The balance on Treasury’s financing package with Yellow stands at more than $737 million, according to recent court filings.
Yellow’s roughly 12,000 tractors and 35,000 trailers were previously approved by the court for sale through auction houses.
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Russell hollandsworth
MD is right the so called tough guy O’Brian is a idiot, I worked for yellow for twenty eight years, the employees helped to keep the company going, and a dumb ass, a retard didn’t give it one more try, he is a big mouth with no back bone to back up his big mouth, I do wish he would get in the ring with Mark Wayne Mullins.
Jack Ampuja
When the full story is written blame for this debacle should fall squarely to Yellow management. They had 20 years to straighten out the company but were never able to figure it out despite big givebacks by the union. I also noticed that near the end when management wanted more union concessions I didn’t see any announced salary reductions for management. Those same people also destroyed New Penn, Holland and Reddaway which were all viable regional carriers with good long-term reputations. Surely they could have been sold to investors if they hadn’t been dismantled as standalone companies.
JTG
“Concussions” “Concessions” what’s the difference?
“Faulture” “Falter” ditto……….
riley
MD – you are wrong, the upper management of Yellow freight was very bad…the best way to describe”the management team that could not and did not want to shoot straight”. They had to many bad company policies….it is amazing that every other LTL carrier can literally make money and they continue to loose money for years (after employee and supervisors give backs). All i have to says is “no job” is better than a piss poor job. An from the current unemployment numbers 3.9% the closure of this company had very little effect on the economy. As far as drivers those that wanted jobs i am fairly sure found jobs.
Cj
After giving this current leadership more than 3 billion real dollars of our hard earned take home pay to payoff 1.3 billion debt with concussions us union workers agreed to help this company only to years later faulture under the same debt that could’ve been paid more than 3xs considering other concussions we agreed to . So this leadership of Hawkins and company should be bring before the grand jury to give testimony as to what happened to the funds collected. Steal and file bankruptcy as I see it. So to say the union caused this is unfounded and untrue we did our part . With the right leadership this company will rebound and survive ! 41 yr teamster.corporate greed is still very much alive !!! SMH remember the company came to us for help and we delivered. Now where’s their end of the bargain ! O yeah ( bankruptcy )
MD
I really think the Jack Cooper purchase is hilarious. O’Brien, Sanders and their posses are a joke. They start a ridiculous rumor in regards to Jack Cooper purchasing the company, getting hopes up of employees who cannot find a job and will let them down again as there is no way that the purchase will happen. These folks know that and are trying to make these past employees think that they are trying to do something for them. Why would these clowns not of supported the change Yellow tried to get them to agree to and none of the 30,000 jobs would have been lost ? Because they have no sense, as the New York Times said in a recent article, O’Brien is the worst leader in the history of unions and has absolutely no clue as to what he is doing, he WILL continue to put union companies out of business as he looks to these folks to be the enemy while the non-union companies continue to prosper because they do not have all the garbage in their bags like the union companies do. We had a GREAT leadership team at Yellow, a number of high profile upper management folks who all has a long tenure within freight companies and had a plan that would have turned the company around and O’Brien would not agree to it. No concessions, just operating changes. You got what you asked for O’Brien, take Sanders with you and go to Cuba as I am sure you can get a boatload of folks to join your union……
Christopher J Thornton
Too little too late.
Mark Erickson
Don’t need a revive Yellow. The world is doing just fine.