Yellow Extends Bid Deadline for Trucks, Trailers
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Yellow Corp. on Oct. 13 rescheduled the bid deadline for its fleet of trucks and trailers, according to court documents related to the shuttered less-than-truckload carrier’s ongoing bankruptcy proceedings.
A 5 p.m. EDT Oct. 13 deadline had been approved Sept. 15 for bidders interested in one of the largest single auctions of rolling stock the U.S. trucking industry has seen. The new bid deadline has yet to be determined, according to the documents.
Rescheduling the bid deadline also means an auction that was due to be held Oct. 18, if necessary, will now be held at a later date, as will declaration of the winning bids at a scheduled court hearing before Bankruptcy Judge Craig Goldblatt in the Bankruptcy Court for the District of Delaware. The hearing is still on Goldblatt’s calendar.
Yellow owned around 12,700 tractors and 42,000 trailers at the end of the second quarter of 2023, according to company documents.
Yellow’s lawyers said in September that around 540 potential buyers contacted the company asking about the equipment and property assets.
Prior to filing for court protection, Yellow ranked No. 13 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
About 2,000 of the tractors were bought with $400 million of a $700 million loan provided by the Department of the Treasury in 2020.
Demand is likely to be strong for the late-model trucks, J.D. Power Senior Analyst & Product Manager Chris Visser told the FTR Transportation Conference 2023 in September. Each is expected to fetch around $100,000, said Visser.
Older trucks made up a much larger share of Yellow’s fleet and will only achieve a price of about $20,000, with demand a lot lower, Visser added.
A Nov. 9 bid deadline was set by Yellow for selling the company’s 169 terminals, as well as other non-rolling stock assets. An auction will then be held Nov. 28, if necessary, and the names of the winning bidders and back-up bidders will be revealed Dec. 1.
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Estes Express Lines is currently the stalking horse bidder for the terminals. Richmond, Va.-based Estes offered $1.525 billion, the third stalking horse bid for the most valuable segment of Yellow’s assets.
A stalking horse bid is an initial offer on the assets of a bankrupt company that sets a bar so others cannot make lower bids.
Old Dominion Freight Line Inc. previously offered $1.5 billion to acquire the terminals Aug. 18, topping a $1.3 billion Estes Express bid on Aug. 17.
Estes Express ranks No. 14 and Thomasville, N.C.-based ODFL ranks No. 10 on the TT Top 100 list of the largest for-hire carriers in North America. ODFL comes in at No. 2 in the LTL rankings while Estes Express is the fifth-ranked carrier in the segment.
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