The liquidation of Yellow Corp.’s rolling stock generated $175.7 million in net proceeds over the past two years, according to a final report submitted to a federal bankruptcy court in Delaware.
The defunct less-than-truckload carrier entered deals with various auction houses in October 2023 to sell the more than 60,000 units listed in its August 2023 bankruptcy filing. The portfolio included approximately 12,000 owned tractors and 35,000 owned trailers.
A filing with the court last week showed the estate executed nearly 58,000 transactions generating $236.4 million in gross proceeds from the sale of tractors, trailers, yard trucks and forklifts. The report didn’t provide a distribution breakdown for the $60.7 million in commissions, fees and expenses paid to liquidators, which included Nations Capital, Ritchie Brothers and IronPlanet.
A July monthly operating report showed Yellow’s estate had $623 million in cash. In addition to the proceeds from equipment sales, Yellow has sold more than 200 service centers for nearly $2.4 billion. The cash will be used to repay its remaining creditors, including former workers who hold claims for PTO, sick time and grievance pay.
Former employees still waiting to get paid
A recent memo from the International Brotherhood of Teamsters to the local unions representing former Yellow employees said a final liquidation plan currently before the court would designate employee claims accrued within six months of Yellow’s bankruptcy filing as “priority.” Those claims would be paid in full, subject to a cap of $15,150. Claims accrued outside of the six-month window would not be a priority and aren’t guaranteed to be paid.
The memo also referenced claims for unpaid health and welfare benefits, which have been filed separately on behalf of employees.
“Bargaining unit members should understand that the repayment they may receive from Yellow could sit anywhere from a few hundred dollars to $15,150, but not significantly more than that,” the memo stated.
The memo also said the IBT is still pursuing an appeal of the Delaware court’s ruling that Yellow was not liable for failing to provide employees with advance notice ahead of mass layoffs in July 2023. The Worker Adjustment and Retraining Notification Act case was appealed in March. The IBT said the maximum award could equal 60 days of pay, or up to $11,000, per eligible worker.
The fate of the fourth iteration of a final bankruptcy plan is uncertain as Yellow’s largest shareholder, MFN Partners, remains in opposition. The Boston-based hedge fund has already filed an objection to the amended plan with other creditors filing joinders to MFN’s objection in recent days. The current timeline calls for all objections to be filed with the court by Oct. 22. A confirmation hearing has been set for Nov. 5.
