Yellow Billion-Dollar Shuffle: In a noteworthy development, the bankrupt trucking firm Yellow Corp has secured court approval to sell a substantial portion of its shipping centers and real estate to various buyers, amounting to a significant $1.88 billion. This move marks the conclusion of a bidder’s ambitious attempt to maintain the company’s unity.
U.S. Bankruptcy Judge Craig Goldblatt, presiding over the hearing in Wilmington, Delaware, endorsed the sale, describing the purchase price as a “tremendous outcome” for both the trucking company and its creditors. The sale, involving the distribution of 130 shipping centers to multiple buyers, has generated sufficient cash to settle Yellow’s pre-bankruptcy debts, including a substantial $700 million linked to a U.S. Treasury Department COVID-19 relief loan sanctioned during the Trump administration in 2020.
Despite pressure from bipartisan U.S. Senators advocating for the company’s preservation to safeguard jobs, Yellow opted for asset division rather than keeping the company intact for an external buyer.
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Sarah Riggs Amico, executive chair of Jack Cooper Transport, spearheaded a bid through Next Century Logistics to acquire Yellow. Although this bid excludes any merger with Jack Cooper, Amico remains committed to potentially bidding on Yellow’s remaining assets, signaling an opportunity to rehire a substantial portion of the workforce affected by Yellow’s shutdown. In this approved sale, prominent trucking company XPO Inc emerged as the primary buyer, acquiring 28 shipping centers for a substantial $870 million.
During the court proceedings, Yellow’s attorney, Allyson Smith, highlighted the auction’s resounding success, surpassing the appraised value of Yellow’s real estate and an initial offer for all shipping centers. Yellow, previously known as YRC, had filed for Chapter 11 bankruptcy protection in August, citing a labor dispute with the International Brotherhood of Teamsters union as a contributing factor to its financial woes. The approved sale signifies a significant step in Yellow’s restructuring efforts.