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Yellow | Jack Cooper Making $2 Billion Bid for Bankrupt Yellow

Freightmaster1

Freightmaster1

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Jack Cooper Making $2 Billion Bid for Bankrupt Yellow | Transport Topics

Jack Cooper Transport is reportedly making a nearly $2 billion bid to snatch up the assets of Yellow, the trucking firm that collapsed in late July and filed for bankruptcy.
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Jack Cooper Transport, a 95-year-old company, provides vehicle hauling and many other logistics services. Its largest customers are General Motors, Ford and Stellantis. The company is owned by the Riggs family, which acquired it from Jack Cooper’s grandson, Thom Cooper Jr.

Sarah Riggs Amico is executive chair of the company’s board. Her father, T. Michael Riggs, is chief executive of the company.

Officials of both the Teamsters and Jack Cooper declined requests for comment.

But Reuters has reported that Amico and other company officials have asked Biden administration officials to support the purchase. Critical to that support is the handling of debt that Jack Cooper would inherit from Yellow. The deal is valued at roughly $2 billion, Reuters reported.
 
The proposed purchase by the Kennesaw, Ga.-based auto transport and logistics company, which is getting bipartisan support on Capitol Hill as well as behind-the-scenes lobbying by the Teamsters, could salvage many of the 30,000 mostly union jobs lost when Yellow shut down amid accusations of financial mismanagement.

KENNESAW GA! ISN'T THAT WHERE OUR FAVORITE MODERATOR ON TRUCKING BOARDS IS FROM? HEY KK! DROP IN TO JACK COOPER ON YOUR WAY TO THE WAFFLE HOUSE AND FIND OUT WHAT'S GOING ON!

Season 21 Episode 6 GIF by Law & Order


:bgroovy:
 
Freightmaster1 said:
The proposed purchase by the Kennesaw, Ga.-based auto transport and logistics company, which is getting bipartisan support on Capitol Hill as well as behind-the-scenes lobbying by the Teamsters, could salvage many of the 30,000 mostly union jobs lost when Yellow shut down amid accusations of financial mismanagement.

KENNESAW GA! ISN'T THAT WHERE OUR FAVORITE MODERATOR ON TRUCKING BOARDS IS FROM? HEY KK! DROP IN TO JACK COOPER ON YOUR WAY TO THE WAFFLE HOUSE AND FIND OUT WHAT'S GOING ON!

Season 21 Episode 6 GIF by Law & Order


:bgroovy:
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Sarah Amino is a smart and labor friendly business woman. If it can be done, she will do it. The only thing I am wondering about is what happens to all the Pension Liability Yellow owes the Funds. Will Jack Cooper Investments have to be responsible for it? Not many companies give Unions credit as a partner on their websites...... https://www.jackcooper.com/our-team-and-partners
 
Jaloc said:
So why can't Jack Cooper pay full pension but they have 2 Billion for Yellow?
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Please elaborate. I didn't hear anything about them not paying pension payments. They just want a loan extension for the 700 million. I hope it works out for them. If it does, I hope they have the good sense to change the name. Yellow is/was a disgrace.
 
When a company closes and files bankruptcy, the union contract can be null and void . There is no way that any company is buying the assets of yellow and accepting the old nmfa terms. Nor would any sane business reopen it under the yellow name . Yellow is finished.
 
No port said:
When a company closes and files bankruptcy, the union contract can be null and void . There is no way that any company is buying the assets of yellow and accepting the old nmfa terms. Nor would any sane business reopen it under the yellow name . Yellow is finished.
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This has already been covered, the NMFA goes with the company under a bankruptcy sale. This is stated right in the NMFA Art 1 sec 3

Section 3. Transfer of Company Title or Interest
The Employer’s obligations under this Agreement
including Supplements shall be binding upon its
successors, administrators, executors and assigns. The
Employer agrees that the obligations of this Agreement
shall be included in the agreement of sale, transfer or
assignment of the business or any covered operation or
portion thereof. In the event an entire active or inactive
operation, or a portion thereof, or rights only, are sold,
leased, transferred or taken over by sale, transfer, lease,
assignment, receivership or bankruptcy proceedings, such
operation or use of rights shall continue to be subject to the
terms and conditions of this Agreement for the life thereof.
Transactions covered by this provision include stock sales
or exchanges, mergers, consolidations, spin-offs or any
other method by which a business is transferred.
 
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There is a reason the NMFA goes on with a bankruptcy sale or every company that wants to get out of a union contract would just file ch 11 and reopen again without it. It goes away with a complete liquidation.
 
The PPP / Covid loan was no different than any of the other PPP loans that thousands of other businesses and union halls received during the china bio flu test. If we are going to send foreign aid to evry tom dick and harry on the face of the earth then we can loan money to our USA businesses to keep them afloat when times are tough. This was a loan not a grant not a subsidy and not a bailout, it was meant to be paid back and will be. Getting a deferment is no big deal and done with student loans all the time. Restructuring a debt is no big deal and done all the time. Usury is theft, but it is a necessary evil in capitalism to get things moving and sometimes it needs to be refinanced no different than a home mortgage.
 
Guessing this could happen as the Government & Taxpayers have invested $700 million , plus they got stock options too plus all the COVID money, plus my -15% and the Government want to look stupid for giving yellow all that $$$$$$$$$ . And think 85% drivers would go back to a job where there did little work and did mostly smoke breaks . Only about 15% would move on to a new job . Think with New management & faster trucks & newer mirrors they could make it go !! 😎
 
RumRunner1 said:
This has already been covered, the NMFA goes with the company under a bankruptcy sale. This is stated right in the NMFA Art 1 sec 3

Section 3. Transfer of Company Title or Interest
The Employer’s obligations under this Agreement
including Supplements shall be binding upon its
successors, administrators, executors and assigns. The
Employer agrees that the obligations of this Agreement
shall be included in the agreement of sale, transfer or
assignment of the business or any covered operation or
portion thereof. In the event an entire active or inactive
operation, or a portion thereof, or rights only, are sold,
leased, transferred or taken over by sale, transfer, lease,
assignment, receivership or bankruptcy proceedings, such
operation or use of rights shall continue to be subject to the
terms and conditions of this Agreement for the life thereof.
Transactions covered by this provision include stock sales
or exchanges, mergers, consolidations, spin-offs or any
other method by which a business is transferred.
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While what you say here is true, the very contract that contains those provisions can under certain conditions be modified by the bankruptcy courts making those provisions moot. Not saying it will happen but it possibly can. And in addition, they would only apply for the life of the agreement.
 
Triplex said:
While what you say here is true, the very contract that contains those provisions can under certain conditions be modified by the bankruptcy courts making those provisions moot. Not saying it will happen but it possibly can. And in addition, they would only apply for the life of the agreement.
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Yes, but it would be negotiated again in March. I would seriously doubt the Judge would tamper with the NMFA if sold as is, however I do believe he would grant the remaining portion of the CHOPS be effective or at least recommend some type of immediate arbitration / dispute resolution on it going forward since that seems to be the underlying argument for the cash burn - inefficiency problems according to the depositions.
 
I feel like this company is just buying the assets that's what the first paragraph says I don't think they have any intention of reopening the company maybe they just want to be in the property business. I just hope one day we all get the money back from the company that is owed to us.
 
trkerman said:
I feel like this company is just buying the assets that's what the first paragraph says I don't think they have any intention of reopening the company maybe they just want to be in the property business. I just hope one day we all get the money back from the company that is owed to us.
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Different articles summarize what they are doing. The original article says they are looking to make a "going concern" bid and save the company.

https://www.yahoo.com/lifestyle/senators-intervene-bankrupt-yellow-700-214513783.html


https://www.investopedia.com/terms/g/goingconcern.asp
 

Key Takeaways​

  • Going concern is an accounting term for a company that is financially stable enough to meet its obligations and continue its business for the foreseeable future.
  • Certain expenses and assets may be deferred in financial reports if a company is assumed to be a going concern.
  • If a company is no longer a going concern, it must start reporting certain information on its financial statements.
  • Negative trends that lead to no longer being a going concern include denial of credit, continued losses, and lawsuits.
  • An auditor can give a going concern opinion when they have doubts about the financial longevity of a company.
 
TC1 said:
Would you go back if called? I have mixed emotions about that. I'm making less than before Yellow closed, but only working 40 hours a week has been nice. I'm about 4 years away from retirement.
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If you only worked 40hr week at Yellow, would it be the same your making now?
 
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