Trade
Yellow Corp.
claims on Xclaim
Yellow Corporation
Background
On August 6, 2023 Yellow Corporation and 23 affiliates filed for Chapter 11 protection in the District of Delaware. Yellow is a publicly traded trucking and logistics company specializing in less-than-truckload services in North America. Beginning in 2019 Yellow began implementing a modernization program called "One Yellow" which required significant cooperation with its heavily unionized workforce. A strike in July effectively stopped all shipments and precipitated the need to terminate all employees and begin a liquidation under Chapter 11. The Debtors filed with bidding procedures and sought to sell all of their assets.
Yellow Corporation
Background
On August 6, 2023 Yellow Corporation and 23 affiliates filed for Chapter 11 protection in the District of Delaware. Yellow is a publicly traded trucking and logistics company specializing in less-than-truckload services in North America. Beginning in 2019 Yellow began implementing a modernization program called "One Yellow" which required significant cooperation with its heavily unionized workforce. A strike in July effectively stopped all shipments and precipitated the need to terminate all employees and begin a liquidation under Chapter 11. The Debtors filed with bidding procedures and sought to sell all of their assets.
Background
On August 6, 2023 Yellow Corporation and 23 affiliates filed for Chapter 11 protection in the District of Delaware. Yellow is a publicly traded trucking and logistics company specializing in less-than-truckload services in North America. Beginning in 2019 Yellow began implementing a modernization program called "One Yellow" which required significant cooperation with its heavily unionized workforce. A strike in July effectively stopped all shipments and precipitated the need to terminate all employees and begin a liquidation under Chapter 11. The Debtors filed with bidding procedures and sought to sell all of their assets.
Pre-petition Capital Structure
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Proposed Treatment
The Debtors achieved considerable success in monetizing their assets early in the case. The debtors sold 130 owned properties and 23 leased properties for a combined sale price of $1.972B. This sale allowed the Debtors to pay all prepetition secured debt and all debtor-in-possession financing and significantly reduced costs of the Chapter 11 proceeding by eliminating interest costs and professional fees. As of the May 31, 2024 monthly operating report the debtor has $315.5M in cash. Furthermore the Debtors have received an extension to the exclusivity period to file a Chapter 11 plan until September 2, 2024. The Debtors continue to try to monetize potential valuable leases and reconcile a significant claims pool. Yellow is currently litigating regarding $8B in WARN Act claims and multiemployer pension plan claims.
Estimated Recovery
The Debtor’s equity traded down significantly after a decision in support of the muli-employer pension plan asset claims. According to the Chief Restructuring Officer’s declaration in support of extending exclusivity filed on May 31, 2024 the Debtor is considering reorganizing around its remaining assets as a go-forward subleasing entity. It also disclosed that the Creditor Committee had approached the debtor with certain terms around a plan that specifically included a set sum for equity holders. The remaining non-cash assets consist of (1) real estate - 47 owned properties, 49 leased properties (assumed), 17 properties being analyzed, (2) rolling stock - 25-30k units (trucks, trailers, etc), (3) accounts receivables ($100m), surety bond cash, smaller assets.
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