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.