Yellow Corp: Bloomberg News and other sources suggest Yellow Corp (YELL.O)’s creditors, led by Apollo Global Management Inc (APO.N), may be close to a deal to provide more cash. Bloomberg covered this.
Yellow shares skyrocketed after this announcement. Their lunchtime price rose 78% to $3.14.
Apollo, a prominent US asset management firm, holds most of Yellow’s term loans. Apollo can provide valuable assistance as a result. Apollo can help because of the two reasons I mentioned. The transportation company struggles to make payments, so the enormous asset management company is working on a debtor-in-possession financing strategy.
Yellow has yet to speak, and Apollo has yet to respond to Reuters.
America’s third-largest trucking company is Yellow Motor Carrier Corporation. Formerly YRC Worldwide. This company offers reasonable LTL shipping. LTL shipping loads items from many carriers into a trailer.
The firm prevented nearly 22,000 Teamsters from striking. This prevented worse events. It met all cash obligations. It compensated its undervalued workers with approximately $50 million in back salary and benefits.
After a week, the Teamsters Union announced that Yellow had closed all their companies and would file for bankruptcy. The company’s inability to restructure its billion-dollar debt caused this potentially catastrophic predicament. The corporation couldn’t restructure its debt, causing this.
Yellow’s 2003 and 2005 acquisitions of Roadway and USF helped the company extend its LTL offerings. Refinitiv owed $1.54 billion last year, a frightening amount.
After reaching an all-time high during the outbreak, online sales plummeted, making it challenging for the corporation to make money. This worsened company issues. Businesses handled less freight than last year.
Yellow owes $1.3 billion by 2024. It’s hard work. These agreements comprise a June-due term loan of 567.4 million dollars and a September-due US Treasury loan of 729.4 million. The company’s finances are often assessed as it enters more competitive markets.