Auto hauler Jack Cooper Transport aims to pull bankrupt Yellow Corp. from the brink in an audacious acquisition. The proposed deal is gaining steam as senators call for federal support.
An Unlikely Suitor
Jack Cooper, a mid-sized carrier with just 1,200 trucks, seems an improbable savior for massive Yellow. The ailing LTL giant ceased operations in July amid its Chapter 11 bankruptcy. But the potential deal has piqued interest in Washington.
Seeking Federal Backing
Senators recently petitioned the Treasury to extend Yellow’s $700 million federal loan. That funding could help finance Jack Cooper’s offer. Letters stressed the importance of keeping Yellow intact to preserve thousands of Teamster jobs.
What Would They Buy?
It’s unclear what assets Jack Cooper is eyeing. Yellow has been liquidating equipment ahead of a court-ordered auction. The company itself has shut down entirely. Most employees were terminated months ago. Buying Yellow as an ongoing operation appears unfeasible.
A Shared History
Still, the two companies have common roots. Both are Midwest-based truckers with unionized workforces. Like Yellow, Jack Cooper underwent its own bankruptcy in 2019. The company reshaped itself with backing from private equity firm Solus.
An Uphill Battle
While senators are cheering it on, Jack Cooper’s bid faces hurdles. Outbidding other purchasers for Yellow’s assets and reviving such a defunct giant would be a herculean challenge. The Treasury’s loan extension may be key to making it financially viable.
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