© Reuters. FILE PHOTO: Semi truck trailers are pictured at freight trucking company Yellow’s terminal near the Otay Mesa border crossing between the U.S. and Mexico, after the company filed for bankruptcy protection, in San Diego, California, U.S., August 7, 2023
(Reuters) – Trucking company Yellow Corp’s assets have attracted significant bidders and their sale could likely surpass the company’s $1.4 billion in secured debt, Fox Business reported on Tuesday, citing people with direct knowledge of the matter.
That means stock holders will get a payday if significant unsecured debt creditors do not emerge, Fox Business reporter Charles Gasparino said in a post on X social media platform, formerly known as Twitter.
Shares of the company closed 24% higher in regular trading after the news. They fell 16% in extended trading.
Yellow, a dominant player in the “less-than-truckload” segment, filed for Chapter 11 bankruptcy protection on Monday, leaving some 30,000 workers looking for new jobs.
The company blamed the International Brotherhood of Teamsters for the bankruptcy filing. The union represents about 22,000 of its employees.
Gasparino said that bidders were lining up for Yellow’s assets because the company would be free of Teamsters membership in bankruptcy.
Yellow is also likely to seek damages representing its entire enterprise value of $1.5 billion from the Teamsters, Gasparino said.
Read the full article here
