that showed a deserted terminal. Several commenters said that they, too, had been let go, some after decades with the company, which was once the nation’s largest freight carrier, with some 300 facilities and a fleet of 12,700 tractors and 42,000 trailers.In a news release Sunday, Yellow chief executive Darren Hawkins expressed “profound disappointment” over the closure: “Today, it is not common for someone to work at one company for 20, 30, or even 40 years, yet many at Yellow did.
Questions remain about how the Treasury Department plans to recoup the $729.3 million that Yellow still owes the government following a controversial coronavirus relief loan made by the Trump administration in 2020.The government would be in a weak position in bankruptcy court because the Treasury stands behind other creditors to recoup one part of the loan and is entitled only to trucks and trailers purchased with another part.
Bruce Alan Markell, a professor of bankruptcy law and practice at the Northwestern Pritzker School of Law, agreed with that assessment, adding: “But then many loans made in distress situations don’t.” A congressional report published in June found that the loan’s certification was marked by missteps and risked losses to taxpayers — even amid government’s frenzied effort to keep the U.S. economy from sinking in the thick of the pandemic. Although the company has made some $68 million in interest payments as of July, it has not made a dent in the balance — delivering just a single $230 payment toward the principal amount, according to a recent Treasury report.
But Yellow’s troubles pre-date the pandemic, stretching back years, analysts say, beginning with a series of acquisitions in the 2000s that weren’t properly integrated into its business. The result was inefficiencies and financial struggles: Yellow has recorded annual losses most years since 2007. And those shortfalls led to tensions with the union over wages and benefits, culminating in the company’s implosion and the complicated efforts refinance $1.3 billion in debt due in 2024.
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