Yellow Corp.’s Chapter 11 filing has thrust a $700 million federal loan the company received during the Covid-19 pandemic into the spotlight.
On Sunday the beleaguered Nashville, Tenn.-based trucking company announced its bankruptcy filing, which it blamed on the Teamsters union. On Monday, in a statement posted on the Teamsters website, the union accused Yellow of squandering the $700 million bailout. Nonetheless, the bailout has come under scrutiny. In a special report released in June, the Congressional Oversight Commission voiced its concerns about the $700 million loan. “Overall, the Commission continues to believe that the Treasury and the Defense Department made missteps in deeming Yellow as critical to maintaining national security and in executing the loan to Yellow,” the report said.
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Yellow Trucking Company Files for Bankruptcy After Receiving $700 Million Pandemic BailoutThe trucking company, which received a $700 million bailout during the pandemic, has filed for bankruptcy due to unsuccessful union negotiations and over $1 billion in debt. The company laid off employees and ceased operations in preparation for the bankruptcy filing.
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Trucking giant Yellow Corp. declares bankruptcy after years of financial strugglesTrucking company Yellow Corp. has declared bankruptcy after years of financial struggles and growing debt, marking a significant shift for the U.S. transportation industry and shippers nationwide. The Chapter 11 bankruptcy, which was filed Sunday, comes just three years after Yellow received $700 million in pandemic-era loans from the federal government. While a Chapter 11 filing is used to restructure debt while operations continue, Yellow, like other trucking companies in recent years, will liquidate and the U.S.
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