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Yellow | Jack Cooper "Going Concern" Deal With Yellow Not Quite DOA Yet?!

Freightmaster1 said:
I heard today that our own Kennesaw Kid is watching the Jack Cooper deal very closely from his estate down the street from Jack Cooper HQ! Come on KK, you can make this happen! Thanks to KK for the pics!


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:bananapartyhat:
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FM, that's cute but not funny. AT this point, the "going concern" bid is almost certainly not going anywhere. The dollars and cents just aren't there, and that's what is most important to the key players. It would be nice to see the doors re-open, but I'm afraid they're going to re-open with another company's name on the building.
 
Real Teamster said:
FM, that's cute but not funny. AT this point, the "going concern" bid is almost certainly not going anywhere. The dollars and cents just aren't there, and that's what is most important to the key players. It would be nice to see the doors re-open, but I'm afraid they're going to re-open with another company's name on the building.
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It wasn't meant to be funny. The Riggs family here are good people. IF, they can get their offer accepted, then they will open up an LTL company. They have been up front during this whole ordeal. That's the way all people in Kennesaw are too, by the way.
 
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KK, I have no doubt that they're good people. Unfortunately, they're dealing with people who have proven to be not particularly "good people". I would love to see this come of fruition, but I have to share my calculated opinion that the likelihood of it happening is just about zero. I wish it was different, but it's not.
 
RumRunner1 said:
Lets hope Judge Craig T. Goldblatt does the right thing and questions the reasoning for quick liquidation when a legitimate restructuring offer was presented as an alternative resolution by an interested party.

http://nbconf.org/team/craig-goldblatt/
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I'm confident Judge Goldblatt will do the right thing. Unfortunately, that is not likely to be the thing that we would all like him to do.
 
I know reading is hard, but what the above means is that Next Gen Logistics can still make a higher bid and take everything. The court only cares about making the most money, and this shows past practice where Jack Cooper has done just that. It's case law incase anyone is curious! ;)
 
silent trucker said:
If they were bidding $3 billion, they'd have a chance. Their numbers are too low to be taken seriously.
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Their bid was supposed to be between 2 and 3 billion by the time everything is said and done which would be right in the ballpark, and give back more than what unsecured creditors will receive by piece mail, so we will see by the 12th.

"The offer was reported to include $1.1 billion in new debt to pay off secured lenders and the hedge funds providing bankruptcy financing as well as $1.5 billion in preferred equity to satisfy claims from unsecured creditors."
 
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Sperg said:
Their bid was supposed to be between 2 and 3 billion by the time everything is said and done which would be right in the ballpark, and give back more than what unsecured creditors will receive by piece mail, so we will see by the 12th.

"The offer was reported to include $1.1 billion in new debt to pay off secured lenders and the hedge funds providing bankruptcy financing as well as $1.5 billion in preferred equity to satisfy claims from unsecured creditors."
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Almost doubling the debt yellow had, with no customers and freight, uncertainty from employees and customers wether they come back or not, and a dilapidated fleet. Hmm, sounds like a recipe for disaster.
 
Supermac said:
Almost doubling the debt yellow had, with no customers and freight, uncertainty from employees and customers wether they come back or not, and a dilapidated fleet. Hmm, sounds like a recipe for disaster.
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I get a kick out of outsiders telling us about our fleet and speculating on whether freight would come back...lol of course it would, more than likely almost instantaneously. Saia picked up most of Yellows Freight, and they were and are 10x's worse than yellow could have dreamed of being. The debt could have been handled easily with better upper management negotiations(ie not paying double the interest rates to Apollo Global) better loading processes to lower damages, (ie not packing everything on load bars and causing more damages just to increase numbers) better management practices to lower billable hours and overtime costs,(Not sending Sr drivers 3 hours in the opposite direction on OT when they had Jr Drivers on the docks breaking trailers on strait time). We were actually running in the black and showing profit without those improvements and the Yellow One merger, just imagine how much revenue we could have made with all of those improvements, and would be again under Next Century. I drove a 2022 Kenworth daily, now granted some of the YRC terminals had the old Volvo's with a million miles, but still they chugged right a long all the same. And finally all of the rats left and are talking trash after doing so, but the core guys would come back in a second and would make the company the best because of it! ;)
 
Sperg said:
I get a kick out of outsiders telling us about our fleet and speculating on whether freight would come back...lol of course it would, more than likely almost instantaneously. Saia picked up most of Yellows Freight, and they were and are 10x's worse than yellow could have dreamed of being. The debt could have been handled easily with better upper management negotiations(ie not paying double the interest rates to Apollo Global) better loading processes to lower damages, (ie not packing everything on load bars and causing more damages just to increase numbers) better management practices to lower billable hours and overtime costs,(Not sending Sr drivers 3 hours in the opposite direction on OT when they had Jr Drivers on the docks breaking trailers on strait time). We were actually running in the black and showing profit without those improvements and the Yellow One merger, just imagine how much revenue we could have made with all of those improvements, and would be again under Next Century. I drove a 2022 Kenworth daily, now granted some of the YRC terminals had the old Volvo's with a million miles, but still they chugged right a long all the same. And finally all of the rats left and are talking trash after doing so, but the core guys would come back in a second and would make the company the best because of it! ;)
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Saia is still in business
 
Sperg said:
I get a kick out of outsiders telling us about our fleet and speculating on whether freight would come back...lol of course it would, more than likely almost instantaneously. Saia picked up most of Yellows Freight, and they were and are 10x's worse than yellow could have dreamed of being. The debt could have been handled easily with better upper management negotiations(ie not paying double the interest rates to Apollo Global) better loading processes to lower damages, (ie not packing everything on load bars and causing more damages just to increase numbers) better management practices to lower billable hours and overtime costs,(Not sending Sr drivers 3 hours in the opposite direction on OT when they had Jr Drivers on the docks breaking trailers on strait time). We were actually running in the black and showing profit without those improvements and the Yellow One merger, just imagine how much revenue we could have made with all of those improvements, and would be again under Next Century. I drove a 2022 Kenworth daily, now granted some of the YRC terminals had the old Volvo's with a million miles, but still they chugged right a long all the same. And finally all of the rats left and are talking trash after doing so, but the core guys would come back in a second and would make the company the best because of it! ;)
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You paint a pretty picture. They would need some outstanding sales people to convince customers. It has been long enough that shippers are settled in with new carriers, be hard to get them to changeā€¦ā€¦ā€¦.. but wait they will throw out dirt cheap rates, you see what happened with that.
 
Sperg said:
I get a kick out of outsiders telling us about our fleet and speculating on whether freight would come back...lol of course it would, more than likely almost instantaneously. Saia picked up most of Yellows Freight, and they were and are 10x's worse than yellow could have dreamed of being. The debt could have been handled easily with better upper management negotiations(ie not paying double the interest rates to Apollo Global) better loading processes to lower damages, (ie not packing everything on load bars and causing more damages just to increase numbers) better management practices to lower billable hours and overtime costs,(Not sending Sr drivers 3 hours in the opposite direction on OT when they had Jr Drivers on the docks breaking trailers on strait time). We were actually running in the black and showing profit without those improvements and the Yellow One merger, just imagine how much revenue we could have made with all of those improvements, and would be again under Next Century. I drove a 2022 Kenworth daily, now granted some of the YRC terminals had the old Volvo's with a million miles, but still they chugged right a long all the same. And finally all of the rats left and are talking trash after doing so, but the core guys would come back in a second and would make the company the best because of it! ;)
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Would you care to provide some examples of trucking companies who ceased operations, filed bankruptcy. Then somehow returned as a "going concern". Don't use Yellow's 1951 bankruptcy as one of your examples, that happened nearly 75 years ago. While the industry was still regulated. Something from this century.
I'm unaware of any trucking company returning from bankruptcy in the last 35+ years.
 
Sperg said:
I know reading is hard, but what the above means is that Next Gen Logistics can still make a higher bid and take everything. The court only cares about making the most money, and this shows past practice where Jack Cooper has done just that. It's case law incase anyone is curious! ;)
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