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Yellow’s 325-door California terminal fetches $55M
Defunct Yellow Corp. liquidates another property as creditors await a final bankruptcy plan. The post Yellow’s 325-door California terminal fetches $55M appeared first on FreightWaves.
In dribs and drabs, bankrupt Yellow Corp.’s handlers continue to liquidate assets. A Tuesday filing with the U.S. Bankruptcy Court in Delaware showed the estate will fetch $55 million for terminating a lease on a 325-door property in Bloomington, California.
The filing said the offer represents the “highest or otherwise best value for the Lease” after Yellow (OTC: YELLQ) marketed the property for 20 months through its broker CBRE and its bankruptcy adviser Ducera.
The landlord is listed as NATMI LPF Bloomington L.P. The group called on the court in September to compel Yellow to provide adequate insurance at the Bloomington facility as well as other terminals it was leasing to the carrier.
A Monday hearing in the Delaware court revealed Yellow had $550 million in cash, a more than $200 million increase from what was listed on its latest monthly operating report for January. Those funds will be distributed to the company’s remaining creditors, who include former employees due paid time off and commissions.
The list of creditors also includes pension funds, which say the company owes billions for Yellow’s abrupt withdrawal from the plans when it closed in 2023. The claims are still being litigated, with payout amounts likely being reduced to a fraction of the initial claims.
Before the recoveries are distributed, however, Yellow and its creditors need to agree on a final Chapter 11 plan. The Monday proceeding was expected to be a confirmation of the final agreement but turned into a status conference as counsel for Yellow said the current version lacked the votes needed to proceed.
A group of unsecured creditors said it plans to file a competing bankruptcy plan with the court by the end of this week.
Yellow’s estate has received more than $2.3 billion from property disposals and millions more from the sale of equipment. The proceeds were used to repay all secured debt. There are still roughly 80 terminals left to liquidate.
Remaining creditors with unimpaired claims await payment while unsecured creditors wait to see what they will receive.
More FreightWaves articles by Todd Maiden:
- Roadrunner adds new lanes to long-haul network
- Yellow creditors’ battle over $550M-plus carcass heats up
- February freight trends mixed, outlook ‘fraught with uncertainty’
The post Yellow’s 325-door California terminal fetches $55M appeared first on FreightWaves.
