Yellow Trucking Faces Bankruptcy After $700M Bailout
Trucking company Yellow faces bankruptcy following financial struggles and a dispute with its union, raising concerns about pandemic relief loan management.
Yellow, a trucking company formerly known as YRC Worldwide, is facing a potential bankruptcy this summer after a long-standing financial struggle, further exacerbated by a dispute with its union. The company, which lost over $100 million in 2019 and has outstanding debt exceeding $1.5 billion, including a $700 million pandemic relief loan from the federal government, is now in litigation with the International Brotherhood of Teamsters. Yellow accuses the union of hindering its restructuring plans and causing further financial damage.
The situation raises broader concerns about pandemic relief funding and defaults, with a potential 17% of funds going to fraudulent actors, according to a report from the U.S. Small Business Administration.