OVERLAND PARK, Kan.– Yellow Corp. has received a brief reprieve from its financial woes thanks to a June 30 federal financial filing.
According to an 8-K filing with the Securities and Exchange Commission, Yellow has been allowed to amend its credit agreements with a group of lenders by extending the covenant compliance deadlines on its more than $1 billion in debt.
In exchange, the Yellow must deliver detailed financial reports and hire a financial adviser.
The SEC filing notes that beginning July 12, the company will be required to produce weekly delivery of a liquidity reports. The company’s liquidity isn’t allowed to fall below $35 million.
Also beginning July 12, the company will be required to produce a 13-week consolidated operating budget and a budget variance report. These documents must compare the actual results against the forecasted results under the related budget on a line-by-line basis and aggregate basis, according to the SEC filing.
Beginning July 26, a monthly supplement to the budget is required.
In a statement to The Trucker, Yellow officials said they are “pleased that Yellow has successfully negotiated adjusted … covenant waivers to its existing credit agreement for one quarter with the U.S. Treasury and two quarters with its Term Loan Lenders. This, along with liquidity preservation efforts such as requesting to defer select health welfare and pension payments for July and August, should give us additional runway to negotiate with the IBT on a solution that provides material wage increases and aligns both parties on modernization of the company.”
The statement added: “We aren’t giving up. Our employees, who have an average of 14 years’ tenure, want us to be here. Our customers want us to be here, even with all the noise around the company our shipment counts have held up and that’s crucial for us to work through this period while we get to negotiations.”
This news comes on the heels of a lawsuit Yellow filed in the U.S. District Court for the District of Kansas against the International Brotherhood of Teamsters.
The complaint alleges that the Teamsters “breached their binding union contract with Yellow, causing more than $137 million in damages by unjustifiably blocking, for over eight months, Yellow’s restructuring plan to modernize its business, which is necessary to compete against non-union carriers that dominate the LTL business today.”
Yellow’s complaint further states that “These modernization efforts, known as One Yellow, are essential to the company’s survival.”
In a news release, the Teamsters Union said it “categorically denies the baseless allegations made by Yellow Corporation in its frivolous lawsuit filed today.”
Less-than-load carrier Yellow is working to right its financial ship, starting with a recent Securities and Exchange Commission filing that allows it a brief reprieve from loan due dates.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
EMPLOYEES SHOULD BUY THE COMPANY, IT IS NOT A SECRET: Yellow’s financial statements are published on their web site and
the SEC website. The stock is 85 cents, because investors KNOW ITS BANKRUPT!!!
EVERY ENPLOYEE can ask any accountant to interpret the books!!!!!!!!
THE EMPLOYEES AND THE UNION CAN BUY THE STOCK AND OWN THE COMPANY!!!
that’s what the employees and union should do!!! NO MORE GOVT BAIL OUTS
ARE COMING, NO WHITE KNIGHT SUCKER INVESTOR IS COMMING!!!
If you want to save your job it would cost about $500 per employee(30,000)= 15 million
to buy the company and make it an employee owned company.