Privately held car transport company, Jack Cooper Transport, is reportedly taking action to rescue Yellow Corp. (OTC:YELLQ) from bankruptcy, with the possibility of the federal government acquiring a stake.
According to Reuters, U.S. Senators Sherrod Brown (D-Ohio), Roger Marshall (R-Kan.), and Bernie Sanders (I-Vt.) have written letters to the Treasury Department, requesting an extension of the maturity date for the $700 million COVID pandemic loans granted to Yellow (OTC:YELLQ) in 2020. The senators propose extending the maturity date from September 2024 to 2026, in exchange for the federal government receiving a 30% stake in the company.
The International Brotherhood of Teamsters has also been actively involved in recent discussions.
Yellow (OTC:YELLQ), as stated in its bankruptcy filing in August, currently owns approximately 12,000 trucks and 35,000 trailers. The company had to lay off 22,000 union drivers when it filed for bankruptcy.
The Effort to Save Yellow Corp.
Yellow Corp. (OTC:YELLQ), a company facing bankruptcy, may find salvation through the efforts of privately held car transport company, Jack Cooper Transport, and the intervention of the federal government. Reports indicate that Jack Cooper Transport is taking steps to rescue Yellow Corp. from its financial woes, with the possibility of the federal government acquiring a significant stake in the company. This potential partnership aims to ensure the survival and stability of Yellow Corp. and its operations.
Government Intervention and Stake Acquisition
A group of influential U.S. Senators, Sherrod Brown (D-Ohio), Roger Marshall (R-Kan.), and Bernie Sanders (I-Vt.), has made a request to the Treasury Department regarding the existing COVID pandemic loans worth $700 million that were provided to Yellow Corp. in 2020. The senators propose extending the maturity date for these loans from September 2024 to 2026. In return for this extension, the federal government would be granted a 30% stake in the company. This strategic move not only aims to safeguard Yellow Corp. but also allows the federal government to have a vested interest in its recovery and success.
Involvement of the International Brotherhood of Teamsters
The International Brotherhood of Teamsters, a labor union representing workers in various industries, has been actively participating in the discussions surrounding the rescue efforts for Yellow Corp. Their involvement underscores the importance of protecting the interests of the employees affected by the company’s financial crisis. The International Brotherhood of Teamsters serves as a vital advocate for the rights and well-being of the union drivers, who unfortunately faced layoffs when Yellow Corp. filed for bankruptcy.
The Scope of Yellow Corp.’s Operations
Yellow Corp., as detailed in its bankruptcy filing made in August, currently operates a fleet of approximately 12,000 trucks and owns 35,000 trailers. These substantial assets highlight the significance of Yellow Corp.’s operations within the transportation industry. Despite the challenges faced by the company, its sizable fleet and infrastructure make it a valuable entity that warrants attention and support.