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Yellow | Tomorrow is the deadline according to Axios

https://sourcingjournal.com/topics/...ucking-teamsters-senators-700-million-473678/

Ahead of Friday’s expected reveal of the winning bidder for Yellow Corp.’s roughly 170 terminals, the future of the defunct trucking company and its assets remains very much up in the air.Yellow held the auction for its terminals Tuesday, two months after accepting a stalking horse bid of $1.525 billion from rival less-than-truckload (LTL) firm Estes Express Lines. At the time, the Estes bid set a floor price for the Yellow terminals, outpacing a prior $1.5 billion offer from Old Dominion Freight Line.Sarah Riggs Amico, executive chair of Jack Cooper Transport, the private auto-hauling company that has been tied with a potential rescue bid for firm, was confi med to have led an offer on Yellow Tuesday, according to reports from the New York Times and the Wall Street Journal.
Amico’s bid reportedly includes $1.1 billion in financing that would be used to immediately repay lenders, such as hedge fund Citadel, pay off bankruptcy financing and fees and fund the new company. On top of that, the new bid offers unsecured creditors, including the Central States Pension Fund, $1.5 billion of perpetual preferred shares in the new company. Tom Nyhan, executive director of the Central States, Southeast and Southwest Areas Pension Fund, told the WSJ his fund believes it is owed almost $5 billion because Yellow withdrew prematurely.
 
Yellow can still opt to accept any of the bids, regardless of the leading floor price. Unlike the other bids from LTL players, focused on buying the terminals, this “going concern” bid would effectively restart Yellow. None of the reports specified who would join Amico in the bid, but the New York Times report said Amico and other female executives would own 51 percent of the new company, which would be separate from Jack Cooper. The new Yellow plans to employ around 15,000 people, down from 30,000 earlier this year, the report said. Sourcing Journal reached out to Amico, as well as Yellow Corp. and Jack Cooper.When the bid was initially reported by Reuters as coming from Jack Cooper itself, this spread some confusion among supply chain analysts, largely due to the fact that shippers that diverted freight from Yellow were unlikely to bring their business back to a resurrected version of the company.
And despite operating its own fleet of roughly 1,200 trucks and employing 1,100 drivers, the company transports automobiles, not freight. There’s also speculation that the company was too small to buy Yellow’s terminal assets. Like Yellow, Jack Cooper also filed for bankruptcy in 2019.
 
The Teamsters, which had a contentious relationship with Yellow and represented 22,000 of the 30,000 employees laid off after the LTL shut down, have supported Amico’s bid. Some argue the union helped plunge the company into bankruptcy in the first place by refusing to budge on Yellow’s planned restructuring, and then planning a possible strike, which spooked shippers into taking their freight elsewhere. The Teamsters have maintained that the trucking firm had been mismanaged for years, claiming the union had conceded $5 billion in wages and benefits to Yellow since 2009. Jack Cooper also happens to employ a Teamsters-unionized workforce, and Amico oversaw the company’s acquisition of two auto haulers with Teamster-represented staff.
Amico and co. would need help from Washington D.C. for any potential deal to materialize, with various high-profile senators from Bernie Sanders to Elizabeth Warren to Josh Hawley all calling on the Treasury Department to delay the maturity date of a $700 million Paycheck Protection Program (PPP) loan that Yellow obtained in 2020. The lawmakers are calling for the department to extend the deadline two years, from 2024 to 2026, which would help a rejuvenated Yellow pay off creditors more easily. But this request is unlikely to be granted.
 
According to the WSJ, Treasury officials have told members of Congress that the department cannot modify the loan because Yellow already filed for bankruptcy. If another company secures the winning bid, Yellow still needs to sell off its rolling stock of approximately 11,700 trucks and 34,800 trailers. An auction for the vehicles was initially slated to take place Oct. 18, but was pushed back to an undetermined date. As of September, Yellow’s lawyers said roughly 540 potential buyers contacted the company asking about the trucks, trailers and property assets.Yellow has said that its vehicles and equipment were appraised at a $900 million value, while the real estate was valued at nearly $1.1 billion. It has set $475 million to $800 million as the sales targets for the auctioneers related to the rolling stock.
 
  • Moreover, the "less-than-truckload" niche in which Yellow plays is under secular strain.
  • That's likely why Rep. French Hill (R-Ark.), a former member of the CARES Act Oversight Commission, said via a spokesperson that he doesn't believe the Treasury should extend or modify the maturity terms of Yellow's loan.
The bottom line: We could know the outcome by as early as tomorrow.
 
RumRunner1 said:
Interesting.... Next Century Logistics, first time I've heard of this.....

Editor's note: This story has been updated to reflect that the rival bid for Yellow Trucking is being led by a new entity formed by Sarah Amico which is called Next Century Logistics, not by Jack Cooper.
Click to expand...

Screenshot_20231130_231412_Google.md.jpeg
 
I think you both are overdue for an eye exam! The article says Amico formed a new company called:

NEXT CENTURY LOGISTICS

NOT NEW CENTURY, NOT JACK COOPER LOGISTICS

Editor's note: This story has been updated to reflect that the rival bid for Yellow Trucking is being led by a new entity formed by Sarah Amico which is called Next Century Logistics, not by Jack Cooper.
 
RumRunner1 said:
I think you both are overdue for an eye exam! The article says Amico formed a new company called:

NEXT CENTURY LOGISTICS

NOT NEW CENTURY, NOT JACK COOPER LOGISTICS

Editor's note: This story has been updated to reflect that the rival bid for Yellow Trucking is being led by a new entity formed by Sarah Amico which is called Next Century Logistics, not by Jack Cooper.
Click to expand...
Next Century doesn't come up in a Google search. I think SOB and Sarah Amico cooked this whole thing up on a date night to get the IBT from looking like they screwed the pooch and not just Hawkins.
 
RumRunner1 said:
https://sourcingjournal.com/topics/...ucking-teamsters-senators-700-million-473678/

Ahead of Friday’s expected reveal of the winning bidder for Yellow Corp.’s roughly 170 terminals, the future of the defunct trucking company and its assets remains very much up in the air.Yellow held the auction for its terminals Tuesday, two months after accepting a stalking horse bid of $1.525 billion from rival less-than-truckload (LTL) firm Estes Express Lines. At the time, the Estes bid set a floor price for the Yellow terminals, outpacing a prior $1.5 billion offer from Old Dominion Freight Line.Sarah Riggs Amico, executive chair of Jack Cooper Transport, the private auto-hauling company that has been tied with a potential rescue bid for firm, was confi med to have led an offer on Yellow Tuesday, according to reports from the New York Times and the Wall Street Journal.
Amico’s bid reportedly includes $1.1 billion in financing that would be used to immediately repay lenders, such as hedge fund Citadel, pay off bankruptcy financing and fees and fund the new company. On top of that, the new bid offers unsecured creditors, including the Central States Pension Fund, $1.5 billion of perpetual preferred shares in the new company. Tom Nyhan, executive director of the Central States, Southeast and Southwest Areas Pension Fund, told the WSJ his fund believes it is owed almost $5 billion because Yellow withdrew prematurely.
Click to expand...
 
Tom also said that unfortunately yellows payment wouldn’t change the amount CSPF retiree’s would receive. “I’m as sick about it as they are but they agreed to the 25% pay in. We just don’t have any way to make them whole”
 
roger23 said:
Next Century doesn't come up in a Google search. I think SOB and Sarah Amico cooked this whole thing up on a date night to get the IBT from looking like they screwed the pooch and not just Hawkins.
Click to expand...
Obviously, it does come up in a Google search. By the way, from your previous posts I assume that you are or were a manager of some sort at Yellow. In the interest of anonymity, just tell us what your job function is/was, not WHERE it was.
 
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roger23 said:
Next Century doesn't come up in a Google search. I think SOB and Sarah Amico cooked this whole thing up on a date night to get the IBT from looking like they screwed the pooch and not just Hawkins.
Click to expand...
Woman owned company gets special minority contracts plus she is related to a mob outfit boss too!
 
RumRunner1 said:
Yellow can still opt to accept any of the bids, regardless of the leading floor price. Unlike the other bids from LTL players, focused on buying the terminals, this “going concern” bid would effectively restart Yellow. None of the reports specified who would join Amico in the bid, but the New York Times report said Amico and other female executives would own 51 percent of the new company, which would be separate from Jack Cooper. The new Yellow plans to employ around 15,000 people, down from 30,000 earlier this year, the report said. Sourcing Journal reached out to Amico, as well as Yellow Corp. and Jack Cooper.When the bid was initially reported by Reuters as coming from Jack Cooper itself, this spread some confusion among supply chain analysts, largely due to the fact that shippers that diverted freight from Yellow were unlikely to bring their business back to a resurrected version of the company.
And despite operating its own fleet of roughly 1,200 trucks and employing 1,100 drivers, the company transports automobiles, not freight. There’s also speculation that the company was too small to buy Yellow’s terminal assets. Like Yellow, Jack Cooper also filed for bankruptcy in 2019.
Click to expand...
Sounds like a disaster from the get-go. Robbing Peter to pay Paul. Going from crushing debt, to a more crushing debt, with no freight.
 
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