Trucking giant Yellow—and the $700 million in taxpayer cash that kept it afloat throughout the pandemic—are an overall loss, we are informed. Told by the union representing a number of its workers. Told by the experts seeing its client base dwindle after seeing its leaders mishandle it and make bad offers for years. Told by the business itself, which has actually stopped operations and is getting ready for a personal bankruptcy filing, followed by likely liquidation.
The personal equity and hedge funds, nevertheless, are informing a various story.
Creditors led by Apollo Global Management Inc. are nearing an offer to supply Yellow Corp. with fresh money throughout a coming personal bankruptcy, according to individuals with understanding of the matter…. Apollo is well-positioned to supply the funding since it owns the majority of among Yellow’s term loans, individuals stated. Talks aren’t last and strategies might alter, they included.
Well-placed, possibly, however not the only one with shadowy prepare for the country’s third-largest trucker.
MFN Partners has actually been purchasing shares of Yellow given that July 10. By Friday, MFN Partners had actually collected 12.77 million shares for a 24.6% stake. Now, its ownership has actually reached 22.07 million shares for a 42.5% stake, according to a Monday filing with the Securities and Exchange Commission. MFN invested about $22.93 million for its shares, consisting of commissions, according to the filing…. MFN requires to get just an extra 3.06 million shares to own 50% of the business and gain overall control over choice of the board and calling a CEO.
If Yellow winds up having less than 300 investors in the procedure of MFN acquiring a bulk stake, MFN likewise would have the ability to take Yellow personal.
Boston hedge fund purchases 9.3M more shares of Yellow for a 42.5% stake [Kansas City Business Journal]
Apollo Leading Bankruptcy Loan Deal for Trucking Firm Yellow [Bloomberg]
Yellow is closing down and headed for personal bankruptcy, the Teamsters Union states. Here’s what to understand [AP]
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