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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Mark Schaeffer
Well, if you truly think the Company (Yellow, YRC) gave a crap about you, you are sadly mistaken.
The Union turned its back, hum.
2009, the Union had local meetings to inform all of us the “Dire Situation” YRC was in.
The givebacks from the membership passed with a plurality.
15% of pay, and 75% of pension accruance per year .
This all coming in the same year YRC signed the NMFA.
Furthermore, if YRC, was in such bad shape, why did they go BUY The USF Corporation in 2006.
Yellow has screwed its workers and the Teamsters for years. Let’s go back to Yellow buying Preston, only to run them into the ground.
Know all your facts before bad-mouthing the Union
You stated Great Pay and Benefits.
The Union got you those, though numerous labor negotiations.
FU
@MD, no pension and substandard pay lead to the fall of Yellow Freight. Poor management and misguided CEO’s didn’t help matters towards the end. You want to blame the Union? The IBT gave nothing but concessions for almost 12 years! Teamsters who lived in the higher cost area’s of the Country (East Coast&West Coast) couldn’t survive on a $60k-75k salary a year. Yellow stopped being a Union carrier when it stopped paying into the pension. And your words sound of a manager and not a Teamster.
riley
MD – your first line (sentence) says it all…”The company went through many tuff times for 15 years….most or the majority of these tuff times where a direct results of poor management. Upper management had 15 years to put this company on the right path to profitable and yet they failed. During this “15 years” teamsters and supervisors took a substantial pay cut (well below industry standards). you say you have 39 years with yellow – well instead of a full pension, you are now receiving a partial pensions because the company fell to honor their previous signed contract and failed to ever make total contributions to your pension fund which you where entitled to. Do not blame Sean Obrien for doing his job, he just asked the company to do what they where suppose to. No other teamster ran company filed for bankruptcy. An if i get the feel from society more UNION (UAW-auto, SAG-screen actors, AFL-CIO and the airline strikes) are gaining in popularity. Strong unions are making a “live able” (middle class) wage.
MD
Riley, I am not wrong, the company went through many tuff times and did what they had to do to keep the company in business for 15 years. Many of us, lets say 33000 appreciated it as we had a VERY GOOD JOB to go to every day with a pay check in our account every pay day, the best insurance a person could have and a very good retirement fund, better than most, even with the changes in the pension when you consider that most people do not get to retire until 65 years old anyways. We the people of YELLOW who stayed on, agreed to what the company had to offer and I can tell you many more were signing up to come to work for us. So my point is, you gave up NOTHING, you agreed to stay and work for Yellow, you had a choice to leave and you DID NOT so that is on you. I can tell you that the most recent executive team did EVERYTHING they could with in their power to keep Yellow in business. They begged and followed Teamster executives to hotels where they were negotiating contracts for T Force, UPS and ABF only to be snubbed and a picture of a tombstone was sent out to all Yellow employees as a slap in a face to them. Did you think that was funny, did it make you feel good, do you feel as if these clowns were working for you ? If so, good, glad you appreciate all their efforts to do absolutely nothing. If you recall, we went thru a recession that was the worst the country has had since the great depression and then Covid which was the worst pandemic in history or at least a 100 years. The executive team that was in place tried very hard to save Yellow but every time they asked for help to improve they were shot down by O’Brien and his team of CLOWNS who think they are all tuff guys but are nothing more than a bunch of loud mouth lazy ass’s. So I will say as I have all along and coming from someone who worked for the company for 39 years and gave just as much or more than anyone, it was well worth the ride and I enjoyed every single second of it. I will be fine and will enjoy my retirement because I had a company that took care of me as I took care of them. We had a lot of great people from top to bottom and I am sorry that many will not be able to enjoy what I will be able to. You have ONLY ONE MAN TO BLAME…..SEAN O’BRIEN. Unions are going by the way side, they are no longer needed unless you are lazy and have absenteeism issues and most people don’t need them as they do nothing more than take your dues and don’t even say thanks, they demand it. Not one union representative showed up at my terminal during the last month of business and they did not even call their members back, they knew that their boss made a very big mistake and could not face the employees, just like O’Brien did for them but now after the fact he is ready to give concessions to a car hauling company that went bankrupt as well. What a joke…..