{"id":75452,"date":"2023-12-11T00:00:00","date_gmt":"2023-12-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/12\/11\/yellow-rejects-bid-to-revive-its-business\/"},"modified":"2023-12-11T00:00:00","modified_gmt":"2023-12-11T00:00:00","slug":"yellow-rejects-bid-to-revive-its-business","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/12\/11\/yellow-rejects-bid-to-revive-its-business\/","title":{"rendered":"Yellow rejects bid to revive its business"},"content":{"rendered":"

Y<\/strong>ellow snubs bid to revive the company:<\/strong>Bankrupt trucker Yellow<\/a> 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\u2019s lawyers picked up by the Wall Street Journal (WSJ)<\/a>. The company\u2019s lawyers told the group leading the bid that the offer \u2014 led by US truck owner Jack Cooper Transport<\/a> \u2019s Executive Chair Sarah Amico \u2014 was \u201cnot viable\u201d and that they will proceed with the sale of some 130 truck terminals that has raised some USD 2 bn<\/a> at a bankruptcy auction earlier this month. The sale of these assets is expected to reel in enough funds to repay Yellow\u2019s creditors, \u201coverwhelming the value\u201d of the revival bid, the company\u2019s lawyers said. <\/p>\n

The problem with the bid: <\/strong>The revival bid failed to garner support from Yellow\u2019s 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 \u201cunderstates startup costs\u201d and \u201coverstates\u201d earnings. <\/p>\n

Background:<\/strong> The company had filed for bankruptcy<\/a> in August after failing to refinance some USD 1.5 bn in debt.<\/p>\n

ALSO WORTH KNOWING- <\/strong><\/p>\n