WASHINGTON — An affiliate of investment firm Citadel has acquired around $485 million in Yellow Corp. debt from Apollo Global Management, according to a report in the Financial Times.
Yellow is currently seeking a bankruptcy loan to fund liquidation.
The Chapter 11 bankruptcy, which was filed Aug. 6, comes just three years after Yellow received $700 million in pandemic-era loans from the federal government. While a Chapter 11 filing is used to restructure debt while operations continue, Yellow, like other trucking companies in recent years, will liquidate and the U.S. will join other creditors unlikely to recover funds extended to the company.
Yellow fell into severe financial stress after a long stretch of poor management and strategic decisions dating back decades.
In 2019, two trucking companies, Celadon and New England Motor Freight, filed for bankruptcy protection and liquidated.
The case is Yellow Corp. 23-11069, US Bankruptcy Court District of Delaware
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.
