Trucking firm Yellow delays request to approve $142.5 million bankruptcy loan (updated)

Yellow

09/08/2023 19:50

(Adds details, background after first paragraph)
       NEW YORK, Aug 9 (Reuters) - Bankrupt trucking company
Yellow Corp  YELL.O  will not seek court approval to borrow
$142.5 million from private equity firm Apollo Global Management
at a Wednesday court hearing, instead choosing to delaying its
request to a future court date.
    The company, which filed for bankruptcy on Sunday, had
planned to seek approval to borrow the first $60 million of a
new $142.5 million loan to facilitate an orderly sale of its
vehicle fleet and other assets. But a revised agenda published
before the hearing indicates that Yellow will discuss the
proposed loan in court without seeking approval for any new
funding.
        The proposed loan, if approved, would put Apollo first
in line for repayment ahead of the U.S. Treasury Department,
which is owed over $700 million on a pandemic bailout loan
approved by former President Donald Trump's administration in
2020.
  
        Yellow filed for 
    bankruptcy
     on Sunday with just $39 million cash on hand, which the
company said was not enough to run a months-long bankruptcy sale
for its 12,000 trucks, real estate holdings and other assets.
  
        Yellow blamed its collapse on a labor 
    dispute
     with the International Brotherhood of Teamsters union. The
union, which represents about 22,000 Yellow employees, said the
Nashville, Tennessee-based company "mismanaged" its way to
bankruptcy despite concessions made by workers.
  


 (Reporting by Dietrich Knauth
Editing by Chris Reese and Richard Chang)
 ((Dietrich.Knauth@thomsonreuters.com;))