Yellow Corp asset sale could surpass $1.4 bln - Fox Business

Yellow

08/08/2023 22:54

Aug 8 (Reuters) - Trucking company Yellow Corp's assets
 YELL.O  have attracted significant bidders and their sale could
likely surpass the company's $1.4 billion in secured debt, Fox
Business reported on Tuesday, citing people with direct
knowledge of the matter.
    That means stock holders will get a payday if significant
unsecured debt creditors do not emerge, Fox Business reporter
Charles Gasparino said in a post on X social media platform,
formerly known as Twitter. 
    Shares of the company closed 24% higher in regular trading
after the news. They fell 16% in extended trading. 
    Yellow, a dominant player in the "less-than-truckload"
segment, filed for Chapter 11 bankruptcy protection on Monday,
leaving some 30,000 workers looking for new jobs.  urn:newsml:reuters.com:*:nL4N39O0MH
    The company blamed the International Brotherhood of
Teamsters for the bankruptcy filing. The union represents about
22,000 of its employees.
    Gasparino said that bidders were lining up for Yellow's
assets because the company would be free of Teamsters membership
in bankruptcy. 
    Yellow is also likely to seek damages representing its
entire enterprise value of $1.5 billion from the Teamsters,
Gasparino said. 

 (Reporting by Ananta Agarwal in Bengaluru; Editing by Shinjini
Ganguli)
 ((Ananta.agarwal@thomsonreuters.com;))