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Yellow, the pickup truck company that shut down operations and filed for bankruptcy protection this summer, on Wednesday rejected the trucking company’s bid to buy and reorganize its business.
In a letter sent to the potential buyer, Yellow’s lawyers argued that the offer was “not valid,” saying they had received no evidence that the offer had the support of the team. company debt, including the Ministry of Finance, which made an emergency loan. in the company during the disease.
The letter, a copy of which was reviewed by The New York Times on Thursday, also said that the plan to revive the Yellow Sea underestimates the costs and difficulties of such an effort. The offer cannot be “approved by the bankruptcy court or in the interests of Yellow’s partners,” the letter said.
Yellow’s management plans to quickly complete its bankruptcy plan, which includes selling the company’s assets to various buyers. The company this week announce the results an auction in which bidders were determined to spend nearly $1.9 billion on 128 lines, Yellow’s most valuable assets. On December 12, the company plans to seek approval for the sale from a federal bankruptcy judge in Delaware.
The letter was a hit to the offer led by Sarah Riggs Amico, the chief executive of the trucking company Jack Cooper, who was ordered to take and revive Yellow. His plan is supported by the International Brotherhood of Teamsters, the union that represents most Yellow employees. He hoped to re-employ many of those workers and facilitate the company’s operations.
On Thursday, Ms. Riggs Amico his application, and said that there is a strong financial support and was put together with the help of many truck sales experts, including the former leader of Yellow.
His request required the support of the Treasury and the Central States Pension Fund, two of Yellow’s largest creditors. For the plan of Ms. Riggs Amico works, the Treasury, a solid debtor, must postpone the repayment of $ 700 million loaned to Yellow in 2020 under the Trump administration, and must be paid to the new year. The bid also required the support of the pension fund, the largest non-debtor. The plan of Ms. Riggs Amico offered $500 million in preferred stock to the new company he hoped to build with Yellow’s assets and employees.
His plan envisioned hiring about 15,000 people, about half the number who worked for Yellow before its leaders closed the company and filed for bankruptcy. Some members of Congress urged the Treasury to look into Ms.’s plan. Riggs Amico, and said it could save jobs.
Said Ms. Riggs Amico on Thursday issued a new, smaller bid to buy Yellow’s unsold assets, which include its remaining locations and trucks. Under this plan, the new company will have at least 12,000 employees. “We look forward to working with the creditor to save thousands of jobs that don’t need to be lost forever,” said Ms. Riggs Amico, about Yellow.
But mining analysts say it is difficult to revive Yellow because many of its customers have probably used other mining companies. And many of its employees — about 10,000 of them — appeared to have found jobs elsewhere, said Avery Vise, vice president of trucking at FTR, a research firm that focus on the cargo business.