According to insiders, the assets of trucking company Yellow Corp (YELL.O) have drawn substantial interest and their sale may exceed the $1.4 billion in secured debt held by the business, Fox Business said on Tuesday.
According to Fox Business reporter Charles Gasparino’s tweet on the social networking site X, formerly known as Twitter, if major unsecured debt creditors do not materialize, stockholders will profit.
Following the news, the price of the company’s shares increased by 24% in regular trade. During extended trading, they lost 16%.
On Monday, Yellow, a major player in the “less-than-truckload” market, sought Chapter 11 bankruptcy protection, leaving over 30,000 employees hunting for new jobs.
The International Brotherhood of Teamsters was cited by the corporation as the cause of the bankruptcy filing. The union represents around 22,000 of its workers.
Because Yellow would be exempt from Teamsters membership in bankruptcy, according to Gasparino, bidders were lined up for its assets.
According to Gasparino, Yellow is also likely to ask for compensation from the Teamsters in the amount of its whole $1.5 billion enterprise value.
The nearly 100-year-old business, which stopped operating on July 30, was a major force in the “less-than-truckload” market, which transports merchandise for a number of clients on a single truck.
