[ad_1]
Freight trucks are driven on the Fisher freeway in Detroit, Michigan March 27, 2009. REUTERS/Rebecca Cook/File Photo
Aug 1 (Reuters) – Creditors led by Apollo Global Management Inc (APO.N) are nearing a deal to provide Yellow Corp (YELL.O) with fresh cash during a coming bankruptcy, Bloomberg News reported, citing people familiar with the matter.
Shares of Yellow were up 78% at $3.14 in afternoon trade.
The U.S. asset manager, which owns most of one of Yellow’s term loans, is well-positioned to provide backing and is finalizing a deal to lead a debtor-in-possession financing for the cash-trapped trucking company, the report said.
Yellow declined to comment, while Apollo did not immediately respond to a Reuters request for comment.
Yellow, formerly called YRC Worldwide, is the third-biggest U.S. trucking company. It transports goods from multiple shippers in single trailers and focuses on “less-than-truckload” (LTL) shipping, the transportation of goods that don’t require a full truckload.
It recently averted a threatened strike by 22,000 Teamsters-represented workers after paying more than $50 million it owed in benefits and pension accruals.
Last week, the Teamsters union said Yellow had ceased operations and was filing for bankruptcy after failing to reorganize and refinance over a billion dollars in debt.
The trucking firm, which bought companies such as Roadway in 2003 and USF in 2005 to strengthen its LTL offerings, posted a total debt of $1.54 billion last year, according to Refinitiv data.
The company’s struggles were compounded by a steep drop in e-commerce shipments from early pandemic highs and an industry-wide decline in freight volumes over the last year.
Yellow has $1.3 billion in debt payments due in 2024, including a $567.4 million term loan due in June and a $729.4 million U.S. Treasury loan due in September.
Reporting by Priyamvada C in Bengaluru; Editing by Anil D’Silva and Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles.
[ad_2]
Source link