Trucking firm Estes Express submits revised $1.525 bln bid for Yellow's shipment centers

Yellow

14/09/2023 02:37

By Juby Babu
       Sept 13 (Reuters) - Trucking firm Estes Express has
submitted a revised stalking horse bid worth $1.525 billion in
cash for bankrupt Yellow Corp's shipment centers, according to a
bankruptcy court filing on Wednesday.
    Yellow said Estes' new bid is the best and superior to Old
Dominion Freight Line Inc's  ODFL.O  $1.5 billion August
stalking horse bid.
    Privately held Estes had submitted a $1.3 billion bid last
month to acquire Yellow's shipment centers.
    A stalking horse bid is an initial bid on the assets of a
bankrupt company, setting the low-end bidding bar so that other
bidders cannot underbid the purchase price.
    "Estes Stalking Horse Bid is an improvement over the Old
Dominion Bid because it offers more money for the Acquired
Assets and less fees in terms of bid protections," Yellow said
in a filing with the U.S. Bankruptcy Court in Delaware.
    Estes also offered a lower breakup fee and other financial
terms.
    In the filing, Yellow said about 540 prospective purchasers
of the assets have contacted the company to date, and bankruptcy
adviser Ducera Partners and 307 have executed confidentiality
agreements to assess the assets.
    Yellow halted operations on July 30 and filed for bankruptcy
early last month, blaming the International Brotherhood of
Teamsters union that represents about 22,000 of its employees
for the company's demise.
    The nearly 100-year-old company filed for bankruptcy with
just $39 million cash on hand, which it said was not enough to
run a months-long bankruptcy sale for its 12,000 trucks, real
estate holdings and other assets.    

 (Reporting by Juby Babu in Bengaluru; Editing by Subhranshu
Sahu)
 ((Juby.Babu@thomsonreuters.com;))