Yellow snubs bid to revive the company:Bankrupt trucker Yellow has turned down an offer that would have brought back a slimmed-down version of the company and rehired thousands of its workers, according to a statement by Yellow’s lawyers picked up by the Wall Street Journal (WSJ). The company’s lawyers told the group leading the bid that the offer — led by US truck owner Jack Cooper Transport ’s Executive Chair Sarah Amico — was “not viable” and that they will proceed with the sale of some 130 truck terminals that has raised some USD 2 bn at a bankruptcy auction earlier this month. The sale of these assets is expected to reel in enough funds to repay Yellow’s creditors, “overwhelming the value” of the revival bid, the company’s lawyers said.

The problem with the bid: The revival bid failed to garner support from Yellow’s unsecured creditors, including pension funds which are owed several USD bns. The US government had also not indicated any intention to defer payment on a USD 700 mn loan. The lawyers also added that the Amico-led bid “understates startup costs” and “overstates” earnings.

Background: The company had filed for bankruptcy in August after failing to refinance some USD 1.5 bn in debt.

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