Trucking firm Yellow considers asset sale through bankruptcy filing – Bloomberg News
3:18 pm Friday, August 04th, 2023
(Reuters) – Trucking firm Yellow is considering a sale of assets and real estate through a bankruptcy filing, which may come as soon as this weekend, Bloomberg News reported on Friday, citing people with knowledge of the situation.
The company’s assets have attracted the interest of a potential financial bidder, the report said adding that the bankruptcy filing could turn into a liquidation.
Yellow did not immediately respond to a Reuters request for comment.
Shares rose as much as 7.5% after the report, but quickly pared gains to trade nearly flat in volatile late afternoon trading.
The stock has risen about 253% since the news of a potential bankruptcy that has been driving a retail investor fueled ‘meme-stock’ rally.
The cash-strapped U.S. trucking company had ceased operations and was planning to file for bankruptcy after failing to reorganize and refinance over a billion dollars in debt, the Teamsters Union said on Sunday.
Yellow, formerly called YRC Worldwide, was the third biggest U.S. trucker specializing in the less-than-truckload segment that combines shipments from different customers in the same trailer.
The company said in June the Teamsters Union was blocking restructuring and modernization efforts, collectively known as “One Yellow”, which it said were critical for Yellow’s ability to refinance about $1.3 billion of debt to be repaid by 2024.
(Reporting by Manya Saini and Ananta Agarwal in Bengaluru;Editing by Arun Koyyur)
