The bankrupt trucking company Yellow Corp is considering an offer that would revive the organization and potentially rehire thousands of former employees.
According to The Wall Street Journal, the executive chair of Jack Cooper Transport, Sarah Riggs Amico, is leading a bid that would replace Yellow with a smaller trucking company.
Amico’s bid, which was submitted November 28, promises $1.1 billion in finances that would be used to repay lenders, pay off bankruptcy fees and fund the new company.
The bid still faces several hurdles, which includes persuading the U.S. government to extend a $700 million loan made to Yellow during the COVID-19 pandemic that’s due in 2024.
Yellow is in the midst of selling off thousands of trucks as well as 170 truck terminals in North America, assets that are valued at more than $2 billion. The company has already begun sending some of its equipment to liquidators. The organization has also accepted a stalking-horse bid of $1.525 billion from Estate Express Lines for the company’s real estate holdings, which are being auctioned off this week.
Representatives for Yellow did not respond to a request for comment from The Wall Street Journal.
The 99-year-old trucking company shut down its operations July 30, 2023, effectively putting 30,000 people out of work. The shutdown came just days after the organization had ended contract negotiations with the Teamsters union that represented 22,000 Yellow workers.
