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Yellow | No Rent Money?

Kennesaw Kid

Kennesaw Kid

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..."Blackstone's Link Logistics claims that Yellow owes it $213K in unpaid rent and other fees for two truck terminals in Orlando, Florida, and Elkridge, Maryland, CoStar reported. R+L Carriers said the company owes it $4.7M, including $2.2M due to the trucker's failure to prevent environmental hazards at properties in Atlanta and Chicago.
Estes Express Lines said that Yellow neglected truck terminals in Milwaukee, Charlotte and Kearny, New Jersey, that would cost at least $27.9M to repair, according to CoStar. Yellow only offered to pay $652K for damages, including broken and cracked asphalt parking lots and roof damage.
Other landlords that raised objections include Terreno Realty Corp., Crown Enterprises, Mad Acquisitions, Kestrel Crossdock and Fazio Faloma Properties."....
 
drummerforhire said:
I’m surprised Estes objected to the condition of any of these terminals considering the state most of their own terminals are in.
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It likely has much more to do with legal clean-up liabilities. When buying a property and soon after discovering major soil contamination, for example, the buyer has recourse for failure of the seller to disclose a known defect. If the seller no longer exists, the buyer can't make them pay for said clean up. Now that it's been discovered, buyer is obligated to remediate it or disclose to the next buyer, greatly reducing the value of the investment.
 
EX396 said:
It likely has much more to do with legal clean-up liabilities. When buying a property and soon after discovering major soil contamination, for example, the buyer has recourse for failure of the seller to disclose a known defect. If the seller no longer exists, the buyer can't make them pay for said clean up. Now that it's been discovered, buyer is obligated to remediate it or disclose to the next buyer, greatly reducing the value of the investment.
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cf-barn-richfield-oh.md.jpeg
Yeah! Just like the old CF Barn in Richfield, Ohio. That place sat empty for years after the Labor Day 2002 closing of CF. Crown Enterprises bought the property and finally tore it all down years later. Rumor has it the land behind the barn and shop is so contaminated that no one will pay to clean it up and rebuild there on the old trucking strip on Brecksville Road. In the old days before the EPA and strict haz-mat regulations, leaking drums, tanks, etc.were just taken out back and the contents leaked into the soil. Same thing happened in the old days up the street at Yellow Freight in Richfield. There's areas way behind the terminal where nothing will grow!
Hazardous Materials GIF by Oi
 
Kennesaw Kid said:
Nope...Wrong! That is a Roadway terminal in Memphis. Yellow sold the one that they owned in Memphis at the merger to raise quick cash. It was MUCH nicer than the Roadway dump.
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It might be off topic but CF built a large terminal in Memphis in the early 80's. I don't remember who bought it. The major asset of any freightline is real estate. Equipment maintenance is usually the first budget cut when the company is going belly up. Freightlines always discount rates for cash flow before they close the doors.
 
EX396 said:
It likely has much more to do with legal clean-up liabilities. When buying a property and soon after discovering major soil contamination, for example, the buyer has recourse for failure of the seller to disclose a known defect. If the seller no longer exists, the buyer can't make them pay for said clean up. Now that it's been discovered, buyer is obligated to remediate it or disclose to the next buyer, greatly reducing the value of the investment.
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Also a move to have the bankruptcy court break all the leases at the end of the month. If Yellow was trying to sell the lease as you see in a retail bankruptcy it will be mighty expensive for a tenant to move-not worth anybody's time. They also put in as unsecured creditors for any money that might be left or for a tax right off.
 
DCM_Doc said:
It might be off topic but CF built a large terminal in Memphis in the early 80's. I don't remember who bought it. The major asset of any freightline is real estate. Equipment maintenance is usually the first budget cut when the company is going belly up. Freightlines always discount rates for cash flow before they close the doors.
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When I hear about equipment, I always think of the Averitt drivers who were complaining about their air conditioning not working and I had to remind them that us Yellow drivers were still praying to get one of the tractors with “power steering”, lolol. (That was true)
 
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