US trucking firm Yellow files for bankruptcy, to wind down
(Reuters) -U.S. trucking firm Yellow Corp filed for Chapter 11 bankruptcy protection on Sunday and said it would wind down, after struggling with a mounting debt load and following tense contract negotiations with the Teamsters Union.
The nearly 100-year-old company's bankruptcy filing puts about 30,000 workers at risk when the freight industry is already grappling with slumping volumes.
The company is a dominant player in the «less-than-truckload» segment that hauls cargo for multiple customers on a single truck.
Its clients include large retailers such as Walmart (NYSE:WMT) and Home Depot (NYSE:HD), manufacturers and Uber (NYSE:UBER) Freight. Some companies had paused shipments to Yellow on fears they could be lost or stranded if the trucking firm went bankrupt.
Prior to its demise, Yellow, one of the largest U.S. trucking companies, held roughly 8% to 10% of market share, per brokerage TD Cowen.
Yellow said on Sunday it intends to fully pay back a $700 million loan former President Donald Trump's administration issued to bail out the long-troubled firm in 2020 under a pandemic relief program.
Yellow, formerly called YRC Worldwide (NASDAQ:YELL), in a Delaware court estimated assets and liabilities of $1 billion to $10 billion, with more than 100,000 creditors.
The company has $1.3 billion in debt payments coming due in 2024, including a $567.4 million private-equity term loan in June and the U.S. loan in September.
Yellow also has a roughly $450 million secured revolving loan from a syndicate of banks arranged by Citizens Bank, Merrill Lynch and others that expires in January 2024.
«This leaves the taxpayer the last creditor to get repaid,» said the authors of a Congressional Oversight Commission report issued in
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