According to court documents that came out on Wednesday, Estes Express Lines’ new offer of $1.525 billion for Yellow’s hubs has become the favorite.
In a Delaware bankruptcy court, Carrier made a “stalking horse offer” that was more than Old Dominion Freight Line’s (NASDAQ: ODFL) $1.5 billion offer. Estes started the bidding war with a first offer of $1.3 billion in the middle of August.
Yellow said in its plea that the Estes deal was the best one so far and asked the court to decide by September 22. With the new deal, all of the bills to vulnerable debtors have been paid off.
Estes Express Lines Designated as Stalking Horse Bidder in Yellow Bankruptcy Case
A representative from Estes informed FreightWaves that they are pleased to have been designated as the real estate stalking horse bidder. Our proposed transaction is believed to be mutually beneficial to both Estes and the Yellow bankruptcy estate. We are excited about being a part of this process and are eager to work together with the parties involved in the case. We are grateful for everyone’s efforts up until now.
Old Dominion’s Exit Payment and Other Transaction Details
Old Dominion asked for a $26 million exit payment and up to $2 million in compensation costs in its plan.
The deal also gives free storage of equipment for 30 days, which is worth more than $10 million, and lets the places be sold together or separately.
Stalking Horse Deal for Yellow’s Assets
The stalking horse deal sets the lowest price at which Yellow’s collection of 170 airports can be sold. If the current deal stays, Estes could still lose out on any or all of the homes. If it’s needed, the sale will be on November 27.
On October 18, the company may sell its moving stock, which includes about 12,000 tractors it owns.
Separate documents turned in on Wednesday showed that 120 possible buyers were interested in Yellow’s assets, and 307 of them signed nondisclosure agreements so they could see the information.
In addition to the secured claims, the pension exit obligations are a large uninsured claim that must be paid. Yellow’s most recent quarterly reports show that the possible value of these claims could be more than $6.5 billion.
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Overall, Estes Express Lines’ new bid of $1.525 billion for Yellow’s terminals is a positive development for the logistics industry. Lading Logistics is dedicated to staying up-to-date with the latest developments in the trucking industry. They offer a wide range of services, including:
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