๐ข๐ป ๐๐๐ด๐๐๐ ๐ฒ๐๐ต, ๐ฌ๐ฒ๐น๐น๐ผ๐ ๐๐ผ๐ฟ๐ฝ ๐ณ๐ถ๐น๐ฒ๐ฑ ๐ณ๐ผ๐ฟ ๐๐ต๐ฎ๐ฝ๐๐ฒ๐ฟ ๐ญ๐ญ ๐๐ฎ๐ป๐ธ๐ฟ๐๐ฝ๐๐ฐ๐, ๐ผ๐ณ๐ณ๐ถ๐ฐ๐ถ๐ฎ๐น๐น๐ ๐บ๐ฎ๐ธ๐ถ๐ป๐ด ๐ถ๐ ๐๐ต๐ฒ ๐น๐ฎ๐ฟ๐ด๐ฒ๐๐ ๐ฏ๐ฎ๐ป๐ธ๐ฟ๐๐ฝ๐๐ฐ๐ ๐ถ๐ป ๐จ.๐ฆ. ๐ง๐ฟ๐๐ฐ๐ธ๐ถ๐ป๐ด ๐๐ถ๐๐๐ผ๐ฟ๐.
๐ฒ Chapter 11 allows the debtor to propose a plan of reorganization to keep it’s business alive long enough to pay back what it owes to it’s creditors.
๐ฐ About $400 million of the $700 million government pandemic loan was spent on “more than 1,100 tractors; 1,600 trailers; and 140 containers in early 2021” according toย FreightWaves.
๐ Due to the downward shift of the market, equipment has depreciated exponentially. ACT’s Used Truck Price Index argues that the tractors alone have lost around 40% of their original value!
๐ค Yellow has announced that they plan to enter a Debtor-in-Possession (DIP) Financing Agreement in order to, “support the business throughout the marketing and sale process, including payment of certain prepetition wages.”
Learn more aboutย Yellow’s bankruptcy in this video (click to watch on LinkedIn); researched and presented by Bridge Logistics’ Sales Director, Chris Seeds!