Semi truck trailers are pictured at freight trucking company Yellow’s terminal near the Otay Mesa border crossing between the U.S. and Mexico, after the company filed for bankruptcy protection, in San Diego, California, August 7, 2023
Mike Blake | Reuters
A group of investors hoping to salvage shuttered trucking giant Yellow (formerly YRC) were dealt a setback on Thursday when executives from the bankrupt company turned down a billion-dollar bid that would have scooped up much of what was left. But the group of investors led by trucking executive Sarah Riggs Amico vowed to continue, hoping that in the end the courts and the Treasury Department allow them to prevail.
One of the sticking points has been Amico’s request to restructure a $700 million CARES Act loan repayment, which helped keep the trucking giant afloat during the pandemic. The U.S. Department of Treasury says their hands are tied.
“The loan in question was made during the prior Administration, and Treasury is one of several creditors taking part in the bankruptcy process. We will continue to work to ensure taxpayers, and impacted workers and their families are treated fairly.” Ashley Schapitl, Treasury Spokesperson, told CNBC.
Other Treasury officials have said the loan cannot be modified because Yellow is in bankruptcy and that new Congressional authority would be needed to issue a new loan since the CARES Act authority has expired. Yellow’s would-be rescuers are disputing Treasury’s legal opinion.
A bipartisan group of eight senators, including Sen. Josh Hawley, R-Mo, and Elizabeth Warren, D-Ma, have publicly supported attempts to save Yellow and its 30,000 jobs, pressing Treasury to restructure the loan.
What brought the iconic freight company to the brink
Yellow, formerly YRC Worldwide, was an iconic presence on America’s highways for generations until its sudden shuttering in July. Six months and a Chapter 11 filing later, it’s clear that there are many shades of Yellow. Some see the yellow…
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