NASHVILLE — Creditors led by Apollo Global Management Inc. are nearing a deal to provide Yellow Corp. with fresh cash during a coming bankruptcy, Bloomberg News reported, citing people familiar with the matter.
Shares of Yellow were up 78% at $3.14 in afternoon trade on Tuesday, Aug. 1.
The U.S. asset manager, which owns most of one of Yellow’s term loans, is well-positioned to provide backing and is finalizing a deal to lead a debtor-in-possession financing for the cash-trapped trucking company, the report said.
Yellow declined to comment, while Apollo did not immediately respond to a Reuters request for comment.
Yellow, formerly called YRC Worldwide, is the third-biggest U.S. trucking company. It transports goods from multiple shippers in single trailers and focuses on “less-than-truckload” (LTL) shipping, the transportation of goods that don’t require a full truckload.
It recently averted a threatened strike by 22,000 Teamsters-represented workers after paying more than $50 million it owed in benefits and pension accruals.
Last week, the Teamsters union said Yellow had ceased operations and was filing for bankruptcy after failing to reorganize and refinance over a billion dollars in debt.
The trucking firm, which bought companies such as Roadway in 2003 and USF in 2005 to strengthen its LTL offerings, posted a total debt of $1.54 billion last year, according to Refinitiv data.
The company’s struggles were compounded by a steep drop in e-commerce shipments from early pandemic highs and an industry-wide decline in freight volumes over the last year.
Yellow has $1.3 billion in debt payments due in 2024, including a $567.4 million term loan due in June and a $729.4 million U.S. Treasury loan due in September.
Yellow didn’t pay the $50 million. You got that part wrong.
Look at what ceo Hawkins Darian gets over a miilion $ a year salary and the rest below him get $700.00 to $200.00 is this why the company isn’t making it
Not sure that would do it. CEOs of other LTL company’s make that and more. Hell drivers make 110 to 150 thousand a year.
This article might have some truth to parts of it but YRC has been in trouble for years. But YRC doesn’t care about any of there employees. I personally worked for YRC and when things went very upside down in 2010 I got layed off and told I didn’t have a job anymore. If YRC gets out of this I very doubt that the union will be part of it. But we will see with eyes wide open. # union breakers.
Yellow didn’t pay the 50m! Do your research before you post! I forgot, you are the media, you post lies!
If YELLOW were to come back, it would be non-union and I would doubt Hawkins and Crew would be in the upper management level with their track records.
Yellow sucks, corporate greed and the union both ruined the company, usf reddaway was a great company befor yellow took them over
how did the union ruin it?
look at abf. we’ll managed union company pal. yellow has always made poor choices. not the union.
greed. poor management and failure to hire qualified drivers. with yellow freight. also. using college students or whoever to run operations. not smart move in this business.
ABF is doing good thanks to the union endorsing a bullshit contract.
today we were at the Hall, ABF froze hiring and laying off here in Irving. unless the union is not telling us the truth?
08/06/23. Brother!
Well look at Ups they just got a new contract and now they’re talking about layoffs because of the money and raises the driver’s got look at it all these companies on on strike for more money and the freight ain’t there the unions talk a big game but if the freight ain’t there and the company ain’t making money they have to cut jobs to keep the company afloat