WASHINGTON — Auto transport giant Jack Cooper is mounting an effort to bring Yellow Corp back to life, according to a Reuters report, which cites “multiple sources familiar with the discussions.”
If the deal works out, some 30,000 union jobs would be saved.
Yellow filed for bankruptcy protection in August after several weeks of heated negotiations with the Teamsters Union.
The company announced it was shutting down on July 30.
A liquidation of Yellow’s trucking and terminal assets is supposed to begin soon in a deal that is expected to value its real estate at $1.5 billion and its vehicle fleet at hundreds of millions of dollars.
Reuters says President Biden has expressed interest in the Jack Cooper deal after “a bipartisan group of U.S. senators stepped up their pressure campaign on the Biden administration.”
U.S. Senators, including Democrat Sherrod Brown, Republican Roger Marshall and Bernie Sanders, an Independent, asked the Treasury Department in separate letters reviewed by Reuters to extend the maturity date for $700 million in COVID pandemic loans given to Yellow Corp by the Trump administration in 2020, in exchange for the government taking a stake of nearly 30% in the company.
“The loans currently come due in September 2024. Jack Cooper’s bid effort hinges largely on whether Treasury extends the payback period to 2026, allowing Jack Cooper to offer more favorable terms for Yellow, because it would not have to pay the loan back right away,” the Reuters report states.
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