{"id":45557,"date":"2023-08-07T17:09:01","date_gmt":"2023-08-07T21:09:01","guid":{"rendered":"https:\/\/ifintechworld.com\/uncategorized\/us-trucking-firm-yellow-files-for-bankruptcy-blasts-teamsters\/"},"modified":"2023-08-07T17:09:03","modified_gmt":"2023-08-07T21:09:03","slug":"us-trucking-firm-yellow-files-for-bankruptcy-blasts-teamsters","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=45557","title":{"rendered":"US trucking firm Yellow files for bankruptcy, blasts Teamsters"},"content":{"rendered":"
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\u00a9 Reuters. FILE PHOTO: Freight trucks are driven on the Fisher freeway in Detroit, Michigan March 27, 2009. REUTERS\/Rebecca Cook\/File Photo<\/span>
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By Abhijith Ganapavaram, Priyamvada C and Juby Babu<\/p>\n

(Reuters) -Some 30,000 workers at Yellow Corp were looking for jobs on Monday after the major trucking company filed for Chapter 11 bankruptcy protection, potentially saddling U.S. taxpayers with losses from a government rescue of the long-troubled carrier. <\/p>\n

The nearly 100-year-old company, which halted operations on July 30, has been a dominant player in the “less-than-truckload” segment that hauls cargo for multiple customers on a single truck. <\/p>\n

It laid blame for the bankruptcy, likely the largest ever for a U.S. trucking firm, at the feet of the International Brotherhood of Teamsters union that represents about 22,000 of its employees. <\/p>\n

Teamsters leadership “was able to halt our business plan, literally driving our company out of business,” Yellow CEO Darren Hawkins <\/span><\/span> (NASDAQ:) said in a statement late Sunday.<\/p>\n

The International Brotherhood of Teamsters blamed Yellow executives for the company’s demise. <\/p>\n

“Yellow’s dysfunctional, greedy C-suite failed to take responsibility for squandering all that cash. They still don’t,” said Teamsters General President Sean O’Brien. “They shamelessly pin their corporate incompetence on working people.”<\/p>\n

Financial analysts traced the company’s persistent financial woes to acquisition-related debt, the high cost of operating disparate companies and low shipping rates that depressed revenue. <\/p>\n

Prior to its filing, Yellow held roughly 8% to 10% of market share, according to brokerage TD Cowen. Its customers included large retailers such as Walmart (NYSE:) and Home Depot <\/span><\/span> (NYSE:), manufacturers and Uber (NYSE:) Freight. <\/p>\n

In its Chapter 11 filing, Yellow estimated total assets of $2.15 billion and total debt of $2.59 billion. <\/p>\n

Yellow executives said they intend to fully repay a $700 million loan former President Donald Trump’s administration issued to bail out the firm in 2020 under a pandemic relief program. Their success will depend on proceeds from selling Yellow’s properties and roughly 12,000 trucks, according to bankruptcy experts. <\/p>\n

Government officials earlier this summer warned that U.S. investments could face losses. In particular, the Treasury Department has a nearly 31% stake in Yellow after accepting 15.9 million company shares as additional security for the loan, according to audit reports and bankruptcy documents. Shareholders are often last to recover their investments. <\/p>\n

Yellow shares skidded 40% to touch a session low of $2.13 on Monday. They soared fivefold last week following a surge in retail investors’ interest.<\/p>\n

It has $1.3 billion in debt payments coming due in 2024, including a roughly $500 million private-equity term loan in June and the $700 million U.S. loan in September. <\/p>\n

Apollo Global Management (NYSE:) has a big chunk of Yellow’s term loan. It arranged debtor-in-possession financing that will keep Yellow afloat during the restructuring and move it to the front of the line for repayment. <\/p>\n

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. <\/p>\n

\u00a0\u00a0\u00a0\u00a0“This leaves the taxpayer the last creditor to get repaid,” said the authors of a congressional report in June. <\/p>\n

Yellow recently averted a strike by 22,000 Teamsters-represented workers by agreeing to pay more than $50 million it owed in worker benefits and pension accruals. The company’s business evaporated in the days leading up to that deal, according to court documents. <\/p>\n

Meanwhile, Yellow employees on Monday filed two lawsuits accusing the company of failing to give the required 60 days notice before firing them.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. FILE PHOTO: Freight trucks are driven on the Fisher freeway in Detroit, Michigan March 27, 2009. REUTERS\/Rebecca Cook\/File Photo By Abhijith Ganapavaram, Priyamvada C and Juby Babu (Reuters) -Some 30,000 workers at Yellow Corp were looking for jobs on Monday after the major trucking company filed for Chapter 11 bankruptcy protection, potentially saddling […]<\/p>\n","protected":false},"author":1,"featured_media":2658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[1],"tags":[83],"class_list":["post-45557","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-uncategorized","tag-featured","post_format-post-format-video"],"yoast_head":"\nUS trucking firm Yellow files for bankruptcy, blasts Teamsters | iFintechWorld<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. 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