NEW YORK — U.S. Bankruptcy Judge Craig Goldblatt on Dec. 12 gave the green light for Yellow Corp. to sell a majority of its shipping centers and property for $1.88 billion.
Goldblatt said the purchase price was a “tremendous outcome” for the trucking company and its creditors, according to a Reuters report.
The sale means that the company’s 130 shipping centers will go to multiple buyers and pay off Yellow’s $1.2 billion debt. That includes $700 million that’s owed to the U.S. Treasury Department for a COVID-19 pandemic relief loan.
Reuters reports that Yellow is still seeking buyers for its remaining owned and leased real estate, including 46 shipping terminals, as well as its fleet of trucks.
In early December, XPO won a bid to purchase 28 of Yellow’s service centers for $870 million.
Meanwhile, Jack Cooper Transport’s executive chair Sarah Riggs Amico said she hasn’t given up on restoring thousands of jobs that were lost after Yellow shuttered operations on July 30.
Yellow filed for bankruptcy protection in August after several weeks of heated negotiations with the Teamsters Union.
In November, Yellow’s lawyers contended that Amico’s bid was “not viable,” saying “they had not gotten any indication that the bid had the support of the company’s creditors, including the Treasury Department, which had made an emergency loan to the company during the pandemic.”
According to Reuters, Amico said on Dec. 12 that “she remained interested in bidding on Yellow’s remaining terminals and trucks, which would allow her to re-hire 12,000 to 15,000 of the workers who lost their jobs when Yellow shut down.”
“We look forward to working with the debtor to save thousands of jobs that don’t need to be permanently lost,” Amico said, according to Reuters.
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.