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© Reuters. FILE PHOTO: Semi truck trailers are pictured at freight trucking firm Yellow’s terminal close to the Otay Mesa border crossing between the U.S. and Mexico, after the corporate filed for chapter safety, in San Diego, California, U.S., August 7, 2023
By Juby Babu
(Reuters) – Trucking agency Estes Specific has submitted a revised stalking horse bid price $1.525 billion in money for bankrupt Yellow (OTC:) Corp’s cargo facilities, in accordance with a chapter courtroom submitting on Wednesday.
Yellow stated Estes’ new bid is the most effective and superior to Outdated Dominion Freight (NASDAQ:) Line Inc’s $1.5 billion August stalking horse bid.
Privately held Estes had submitted a $1.3 billion bid final month to accumulate Yellow’s cargo facilities.
A stalking horse bid is an preliminary bid on the belongings of a bankrupt firm, setting the low-end bidding bar in order that different bidders can’t underbid the acquisition worth.
“Estes Stalking Horse Bid is an enchancment over the Outdated Dominion Bid as a result of it provides more cash for the Acquired Property and fewer charges by way of bid protections,” Yellow stated in a submitting with the U.S. Chapter Courtroom in Delaware.
Estes additionally supplied a decrease breakup charge and different monetary phrases.
Within the submitting, Yellow stated about 540 potential purchasers of the belongings have contacted the corporate to this point, and chapter adviser Ducera Companions and 307 have executed confidentiality agreements to evaluate the belongings.
Yellow halted operations on July 30 and filed for chapter early final month, blaming the Worldwide Brotherhood of Teamsters union that represents about 22,000 of its workers for the corporate’s demise.
The practically 100-year-old firm filed for chapter with simply $39 million money available, which it stated was not sufficient to run a months-long chapter sale for its 12,000 vehicles, actual property holdings and different belongings.
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