𝗢𝗻 𝗔𝘂𝗴𝘂𝘀𝘁 𝟲𝘁𝗵, 𝗬𝗲𝗹𝗹𝗼𝘄 𝗖𝗼𝗿𝗽 𝗳𝗶𝗹𝗲𝗱 𝗳𝗼𝗿 𝗖𝗵𝗮𝗽𝘁𝗲𝗿 𝟭𝟭 𝗕𝗮𝗻𝗸𝗿𝘂𝗽𝘁𝗰𝘆, 𝗼𝗳𝗳𝗶𝗰𝗶𝗮𝗹𝗹𝘆 𝗺𝗮𝗸𝗶𝗻𝗴 𝗶𝘁 𝘁𝗵𝗲 𝗹𝗮𝗿𝗴𝗲𝘀𝘁 𝗯𝗮𝗻𝗸𝗿𝘂𝗽𝘁𝗰𝘆 𝗶𝗻 𝗨.𝗦. 𝗧𝗿𝘂𝗰𝗸𝗶𝗻𝗴 𝗛𝗶𝘀𝘁𝗼𝗿𝘆.
💲 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.
💰 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 to FreightWaves.
📉 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!
🤝 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 about Yellow’s bankruptcy in this video (click to watch on LinkedIn); researched and presented by Bridge Logistics’ Sales Director, Chris Seeds!