Yellow Corp Bankruptcy Filing Battle : A Tempestuous Dance of Dollars and Debtors

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Semi truck trailers are pictured at freight trucking company Yellow’s terminal near the Otay Mesa border crossing between the U.S. and Mexico, after the company filed for bankruptcy protection, in San Diego, California, U.S., August 7, 2023 REUTERS/Mike Blake

In a scenario reminiscent of high-stakes poker, trucking giant Yellow Corp raised the stakes when it announced to a Delaware bankruptcy judge that it had inked an “agreement in principle” for a whopping $142.5 million in Chapter 11 financing.

But that wasn’t the end of it. A jaw-dropping offer of $1.2 billion for its truck terminals quickly followed, making the courtroom echo with gasps of astonishment.

Yellow Corp Bankruptcy Filing Battle: The Players and Their Moves

Just 24 hours before the dramatic revelation, Yellow’s counsel informed U.S. Bankruptcy Judge Craig T. Goldblatt of their preliminary handshake with MFN Partners and hedge fund powerhouse Citadel.

The latter had recently scooped up a cool half a billion of Yellow’s secured debt. Alongside this, trucking behemoth Estes Express Lines placed a stalking horse bid for Yellow’s vast fleet of 166 truck terminals.

Cascading Challenges: Barely a week ago, Yellow had taken the Chapter 11 route, citing a liquidity crisis that hamstrung its ability to service a towering $1.5 billion debt.