Estes’ $1.525B stalking horse bid for Yellow’s terminals wins out

“We are pleased to announce that we have been formally approved by the court as the real estate stalking horse bidder,” a representative with Estes told FreightWaves. “We continue to believe our transaction is mutually beneficial to both Estes and the Yellow bankruptcy estate. We look forward to continuing in this process and working collaboratively with the parties in the case, and we appreciate everyone’s continued efforts.”

The bid sets the price floor for Yellow’s service centers. Estes is unlikely to walk away with all 174 terminals as a full sales process will still occur. The bid deadline for the terminals is set for Nov. 9, with an auction expected to take place on Nov. 28 if needed.

A hearing held last week revealed that initial indications of interest for some of the real estate has been as much as two to 11 times appraised value. At the hearing, counsel for Yellow also said that the proceeds from the terminal sales will likely be more than enough to repay all outstanding amounts due to secured creditors.

Yellow’s unsecured claims, however, may garner more interest moving forward. A recent filing with the Securities and Exchange Commission said Yellow’s pension fund withdrawal liabilities could top $6.5 billion.

The International Brotherhood of Teamsters, which represents roughly 22,000 former Yellow workers, was vocal this week, calling for the U.S. Senate to investigate the company’s bankruptcy as a judiciary committee looks more broadly at bankruptcy reform.

Up next on the auction block is Yellow’s owned rolling stock, which includes nearly 12,000 tractors and 35,000 trailers. A deadline for equipment bids has been set for Oct. 13, with an auction set to occur on Oct. 18 if needed.

More FreightWaves articles by Todd Maiden

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• Yellow asset sales, bankruptcy financing approved