CR: Vying for Yellow Corp assets

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Cathy Morrow Roberson writes:

Drama continues to swirl around bankrupted Yellow as the focus turns to its assets. During a bankruptcy court hearing, Yellow revealed that Estes is offering to pay $1.3 billion for all of Yellow’s terminals. “Estes felt it was important to try to bring a proposal to the Yellow bankruptcy estate and its creditors that would add some value for the benefit of all case constituents and reduce some of the uncertainty surrounding this bankruptcy process,” Estes said in a statement to the Journal of Commerce.  Bill Cassidy writes that Yellow and Estes already have a relationship. Although they compete for freight and customers, Estes owns several of Yellow’s terminals and leased them to Yellow. The $1.3 billion bid would give Estes the choice of more than 160 facilities owned by Yellow to use, lease, or sell. 

– However, it seems that Old Dominion Freight Line Inc. has now offered $1.5 billion to acquire Yellow Corp.’s 169 terminals according to Transport Topics. 

– The Yellow fallout has led to much less capacity and LTL prices rising Cassidy writes.“We’re already starting to see LTL prices creep up,” Bart DeMuynk, strategic advisor at project44, said in an interview. He expects LTL rates to increase about 7% on average, although companies that relied more on Yellow’s carriers will pay a higher price…

The full post is here.