Sept 13 (Reuters) – Trucking company Estes Express made a revised offer of $1.525 billion in cash for bankrupt Yellow Corp’s freight centers, according to a bankruptcy court filing on Wednesday.
Estes’ new offer is better and better than the $1.5 billion offer made by Old Dominion Freight Line Inc (ODFL.O) in August, Yellow said.
Privately held Estes made a $1.3 billion bid last month to acquire Yellow’s shipping centers.
A stalking horse bid is an initial bid on the assets of a bankrupt company, with the low bid bar set so that other bidders cannot bid below the purchase price.
“The Estes Stalking Horse offer is an improvement over the Old Dominion offer because it offers more money for the acquired assets and lower fees in connection with bid protection,” Yellow said in a filing in U.S. Bankruptcy Court in Delaware.
Estes also offered a lower breakup fee and other financial terms.
In the filing, Yellow said about 540 potential buyers of the assets have contacted the company so far, and bankruptcy advisor Ducera Partners and 307 have executed confidentiality agreements to evaluate the assets.
Yellow ceased operations on July 30 and filed for bankruptcy early last month, blaming the International Brotherhood of Trucking Workers union, which represents about 22,000 of its employees, for the company’s demise.
The nearly 100-year-old company filed for bankruptcy with just $39 million in cash, which it said was not enough to conduct a months-long bankruptcy sale of its 12,000 trucks, real estate holdings and other assets.
(Reporting by Gopi Babu in Bengaluru – Prepared by Mohammed for the Arabic Bulletin) Editing by Subhranshu Sahu
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