Yellow | Simply Confused

[albag]

Bankruptcy law trumps contract law which allows the leased facilities in a babnkruptcy to be auctioned off if someone if The market value is higher than what yellow was paying to the owners and they are. The lease values were set in 2009 when most of the leased facilities were sold and while the lease payments were subject to a cost increase each year, the increase is way below what the market value of rent for industrial property has been over the last 15 years. But here is the kicker. The leases are only good for 30 years (my company bought 5 of them in 2009) So the current owner can take over the property in 2039. While that seems like a long time from now, it is only 15 years. My question for Sara is if you open an LTL operation with a bunch of Yellow leased facilities, what are you going to do in 15 years when the owners start taking back the facilities you are operating in?

Reasonable question.

 

[ltltrkr]

Bankruptcy law trumps contract law which allows the leased facilities in a babnkruptcy to be auctioned off if someone if The market value is higher than what yellow was paying to the owners and they are. The lease values were set in 2009 when most of the leased facilities were sold and while the lease payments were subject to a cost increase each year, the increase is way below what the market value of rent for industrial property has been over the last 15 years. But here is the kicker. The leases are only good for 30 years (my company bought 5 of them in 2009) So the current owner can take over the property in 2039. While that seems like a long time from now, it is only 15 years. My question for Sara is if you open an LTL operation with a bunch of Yellow leased facilities, what are you going to do in 15 years when the owners start taking back the facilities you are operating in?

we only have 1 left that was leased to Yellow- it was renegotiated and the current lease ends in 2027. That would make no sense for 3 years of the lease.

 

[Freightmaster1]

Dark Horse Bidder Makes Second Offer for Yellow Assets | Transport Topics

Next Century Logistics submitted a second bid for Yellow Corp. assets Dec. 7 after an initial offer to reanimate the bankrupt carrier was turned down by the administrators of Yellow’s assets.

www.ttnews.com

Next Century Logistics Inc. submitted a second bid for Yellow Corp. assets Dec. 7 after an initial offer to reanimate the bankrupt less-than-truckload carrier was turned down by the administrators of Yellow’s assets, according to sources.

The latest proposal by Next Century Logistics, led by Jack Cooper Transport Executive Chair Sarah Amico, is for 46 owned terminals and 147 leased terminals as well as Yellow rolling stock, sources close to the bid said Dec. 8.