Yellow Corp. Buys Time Amid Bankruptcy Threat

Struggling truckload carrier Yellow Corp. gains a reprieve from lenders, waiving certain financial targets, and giving the company time to navigate challenges from the Teamsters union and bankruptcy threats.

Yellow Corp. Buys Time Amid Bankruptcy Threat
Image Source: Yellow Corp.

Yellow Corp., a less-than-truckload carrier, has negotiated a deal with its lenders that absolves it from meeting certain financial targets. In exchange for this leeway, Yellow Corp. has agreed to a series of stipulations, including reporting to a third-party "operational adviser." This agreement gives Yellow Corp. the breathing space it needs to navigate ongoing conflicts with the Teamsters Union and potential bankruptcy threats. The company also sold a terminal in Compton, California, for $80 million as part of its reorganization efforts to pay off over $1.3 billion in loans and right its balance sheet.

Source: WSJ

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