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Yellow Offered a $1.3B Loan, Will Seek Higher Bids Going Forward

Yellow Corp. received a bid of $1.3 billion following its bankruptcy filing earlier in August.

Posted August 21, 2023

Trucking firm Estes Express has submitted a $1.3 billion bid to acquire bankrupt Yellow Corp’s shipment centers, according to a court hearing held last week.

The Virginia-based firm Estes proposed a bankruptcy loan as part of its bid. However, Yellow, the formally Overland Park-based firm, instead decide to move forward with a loan from its largest shareholder, the hedge fund groups Citadel and MFN Partners, according to an article from Reuters.

Citadel also bought out $500 million in pre-bankruptcy debt that Yellow owed to private equity firm, Apollo Global Management.

The loan is worth $142.5 million. The loan gives Yellow 180 days to find higher bids for its real estate assets and the inventory of 12,000 trucks. Yellow is currently waiting on approval from the courts on the new loan.

When Yellow filed for bankruptcy, the trucking firm had only $39 million in cash, Reuters reports. Estes’ $1.3 billion loan would certainly cover the $700 million pandemic relief loan, taken in 2020, still owed to the U.S. Treasury Department by Yellow.

On August 6, Yellow filed for bankruptcy to the surprise of approximately 30,000 employees who have since lost their jobs.