Yellow raises USD 2 bn through its bankruptcy auction

Trucking titan Yellowis set to raise more than USD 2 bn through a bankruptcyauction that has dispersed its truck terminals amongst its rivals, according to a US Bankruptcy Court filing in Delaware picked up by Wall Street Journal (WSJ). Nearly 12 companies bought 75% of the bankrupt trucking firm’s assets, though the bids are pending approval by the US court. The remaining assets are to be sold for hundreds of mns more over the coming months, WSJ cites a source in the know as saying. The company filed for bankruptcy in August after failing to refinance some USD 1.5 bn in debt.

Is there hope for the revival of Yellow? The company had hopes to rebuild itself as a smaller company and rehire its former employees,with plans to ask for USD 1.1 bn in financing and to push back the repayments of its debts, according to WSJ. The sales of its assets push this plan further out of reach, the news outlet says.