FW: Yellow shareholders get desired ruling in Delaware bankruptcy court

FREIGHTWAVES reports:

A Delaware bankruptcy court ruled Monday to give Yellow Corp. more time to exclusively oversee its liquidation. A 90-day extension keeps other financial firms from putting forward competing plans for unwinding the estate. Counsel for Yellow argued that other interested parties may have sought an expedited disposal of its remaining assets, resulting in lower proceeds and severely diminishing the chances of any monetary recovery for equity holders.

Testimony from Matt Doheny, former Yellow chairman and the company’s current chief restructuring officer, said the group in place represents the best option for maximizing value on the remaining properties, rolling stock and other assets that are being sold.

The committee of unsecured creditors to the estate argued the liquidation has slowed significantly in recent months and that the cash burn from professional fees to attorneys and advisers has become detrimental to the remaining stakeholders, which includes pension funds. It asserted the process is “running the estates into the ground”… 

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