99-year-old trucking company Yellow shuts down, putting 30,000 out of work
Chris Isidore, CNN
Mon, July 31, 2023
Joe Raedle/Getty Images
Yellow Corp., a 99-year-old trucking company that was once a dominant player in its field, halted operations Sunday and will lay off all 30,000 of its workers.
The unionized company has been in a battle with the Teamsters union, which represents about 22,000 drivers and dock workers at the company. Just a week ago the union canceled a threatened strike that had been prompted by the company failing to contribute to its pension and health insurance plans. The union granted the company an extra month to make the required payments.
But by midweek last week, the company had stopped picking up freight from its customers and was making deliveries only of freight already in its system, according to both the union and Satish Jindel, a trucking industry consultant.
While the union agreed not to go on strike against Yellow, it could not reach an agreement on a new contract with the trucking company, according to a memo sent to local unions Thursday by the Teamsters’ negotiating committee. The union said early Monday that it had been notified of the shutdown.
“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry,” said Teamsters President Sean O’Brien in a statement.
Company officials did not respond to numerous requests for comment Sunday and Monday.
While the company is based in Nashville, Tennessee, it is a national company with terminals and employees spread between more than 300 terminals nationwide. Experts in the field said it was primarily an unaffordable amount of debt, more than the cost of the union contract, that did in Yellow.
“The Teamsters had made a series of painful concessions that brought them close to wage parity with nonunion carriers,” said Tom Nightingale, CEO of AFS Logistics, a third-party logistics firm that places about $11 billion worth of freight annually with different trucking companies on behalf of shippers. He said the company began taking on significant amount of debt 20 years ago in order to acquire other trucking companies.
“Now their debt service is just enormous,” he said, pointing to $1.5 billion in debt on its books.
There are two other national competitors in Yellow’s segment of the trucking market which are also unionized, ABF Freight and TForce. Both were far more profitable in recent years than Yellow, which posted only a narrow operating profit in 2021 and 2022 and a $9.3 million operating loss in the first quarter.
There were reports last week that a bankruptcy filing would come by July 31, although the company said last week only that it continued to be in talks with the Teamsters and that it was considering all of its options. The Teamsters said Monday the company is filing for bankruptcy.
US taxpayers to take a hit
The closing is bad news not only for its employees and its customers, who generally used Yellow because it offered some of the cheapest rates in the trucking sector, but also for US taxpayers. The company received a $700 million loan from the federal government in 2020, a loan that resulted in taxpayers holding 30% of its outstanding stock. And the company still owed the Treasury department more than $700 million according to its most recently quarterly report, nearly half of the long-term debt on its books.
Yellow’s stock lost 82% of its value between the time of that loan and Thursday close after reports of the bankruptcy plans, closing at only 57 cents a share. It bumped up 14 cents a share on Friday, but still remained a so-called penny stock.
The company had received that loan during the pandemic, despite the fact that at the time it was facing charges of defrauding the government by overbilling on shipments of items for the US military. The company eventually settled the dispute without admitting wrongdoing but was forced to pay a $6.85 million fine.
Yellow handles pallet-sized shipments of freight, moving shipments from numerous customers in the same truck, a segment of the trucking industry known as less-than-truckload, or LTL. The company had been claiming as recently as June that it was the nation’s third largest LTL carrier.
But the company handled only about 7% of the nation’s 720,000 daily LTL shipments last year, said Jindel. He said there is about 8% to 10% excess capacity in the LTL sector right now, so the closure of Yellow shouldn’t cause a significant disruption in supply chains. But he said it will cause higher rates for shippers who depend on LTL carriers, since it was the excess capacity that sent prices lower.
Higher prices will hit Yellow customers, Jindel said.
“The reason they were using Yellow was because they were cheap,” he said. “They’re finding out that price was below the cost of supporting a good operation.”
While the US economy has remained strong, spending by consumers has been shifting in recent years from the goods they were buying in 2020 and early 2021 when they were still stuck close to home due to the pandemic, to services, such as plane tickets and other experiences that don’t need to move by truck. Nightingale said industrywide LTL shipments fell 17% between 2021 and 2022, and another 5% in the first quarter compared to the first quarter a year earlier.
He said that while Yellow could be profitable when demand for trucking was strong, it couldn’t get by in the face of the slowdown in freight, and the drop in trucking rates that went with it. Shippers worried about Yellow’s future started shifting to other carriers, as its shipments fell 13% in the first quarter compared a year earlier.
“It’s what Warren Buffett says, when the tide goes out you discover who’s been swimming naked,” Nightingale said.
End of an era in trucking
When the trucking industry was deregulated nearly 40 years ago, the segment of the industry that handled full trailers of cargo, known as truckload, soon was dominated by non-union trucking companies. The only thing low-cost competitors needed to enter that segment of the industry was a truck.
But the LTL segment requires a network of terminals to sort incoming and outgoing freight. That limited, but did not prevent, the entry of low-cost competitors. So unionized carriers such as Yellow continued to be major players, even as non-union rivals grew.
Eventually non-union carriers came to dominate the LTL segment as well. By early in this century, many of the remaining unionized LTL carriers, including Yellow and rivals such as Roadway Express, New Penn and Holland, merged to survive.
Yellow, Roadway and a third company known as CF or Consolidated Freightways had once been known as the Big Three of the trucking industry. CF went out of business in 2002. And with Yellow Corp. closing, the final two parts of the Big Three are now out of business as well.
Chris Isidore, CNN
Mon, July 31, 2023
Joe Raedle/Getty Images
Yellow Corp., a 99-year-old trucking company that was once a dominant player in its field, halted operations Sunday and will lay off all 30,000 of its workers.
The unionized company has been in a battle with the Teamsters union, which represents about 22,000 drivers and dock workers at the company. Just a week ago the union canceled a threatened strike that had been prompted by the company failing to contribute to its pension and health insurance plans. The union granted the company an extra month to make the required payments.
But by midweek last week, the company had stopped picking up freight from its customers and was making deliveries only of freight already in its system, according to both the union and Satish Jindel, a trucking industry consultant.
While the union agreed not to go on strike against Yellow, it could not reach an agreement on a new contract with the trucking company, according to a memo sent to local unions Thursday by the Teamsters’ negotiating committee. The union said early Monday that it had been notified of the shutdown.
“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry,” said Teamsters President Sean O’Brien in a statement.
Company officials did not respond to numerous requests for comment Sunday and Monday.
While the company is based in Nashville, Tennessee, it is a national company with terminals and employees spread between more than 300 terminals nationwide. Experts in the field said it was primarily an unaffordable amount of debt, more than the cost of the union contract, that did in Yellow.
“The Teamsters had made a series of painful concessions that brought them close to wage parity with nonunion carriers,” said Tom Nightingale, CEO of AFS Logistics, a third-party logistics firm that places about $11 billion worth of freight annually with different trucking companies on behalf of shippers. He said the company began taking on significant amount of debt 20 years ago in order to acquire other trucking companies.
“Now their debt service is just enormous,” he said, pointing to $1.5 billion in debt on its books.
There are two other national competitors in Yellow’s segment of the trucking market which are also unionized, ABF Freight and TForce. Both were far more profitable in recent years than Yellow, which posted only a narrow operating profit in 2021 and 2022 and a $9.3 million operating loss in the first quarter.
There were reports last week that a bankruptcy filing would come by July 31, although the company said last week only that it continued to be in talks with the Teamsters and that it was considering all of its options. The Teamsters said Monday the company is filing for bankruptcy.
US taxpayers to take a hit
The closing is bad news not only for its employees and its customers, who generally used Yellow because it offered some of the cheapest rates in the trucking sector, but also for US taxpayers. The company received a $700 million loan from the federal government in 2020, a loan that resulted in taxpayers holding 30% of its outstanding stock. And the company still owed the Treasury department more than $700 million according to its most recently quarterly report, nearly half of the long-term debt on its books.
Yellow’s stock lost 82% of its value between the time of that loan and Thursday close after reports of the bankruptcy plans, closing at only 57 cents a share. It bumped up 14 cents a share on Friday, but still remained a so-called penny stock.
The company had received that loan during the pandemic, despite the fact that at the time it was facing charges of defrauding the government by overbilling on shipments of items for the US military. The company eventually settled the dispute without admitting wrongdoing but was forced to pay a $6.85 million fine.
Yellow handles pallet-sized shipments of freight, moving shipments from numerous customers in the same truck, a segment of the trucking industry known as less-than-truckload, or LTL. The company had been claiming as recently as June that it was the nation’s third largest LTL carrier.
But the company handled only about 7% of the nation’s 720,000 daily LTL shipments last year, said Jindel. He said there is about 8% to 10% excess capacity in the LTL sector right now, so the closure of Yellow shouldn’t cause a significant disruption in supply chains. But he said it will cause higher rates for shippers who depend on LTL carriers, since it was the excess capacity that sent prices lower.
Higher prices will hit Yellow customers, Jindel said.
“The reason they were using Yellow was because they were cheap,” he said. “They’re finding out that price was below the cost of supporting a good operation.”
While the US economy has remained strong, spending by consumers has been shifting in recent years from the goods they were buying in 2020 and early 2021 when they were still stuck close to home due to the pandemic, to services, such as plane tickets and other experiences that don’t need to move by truck. Nightingale said industrywide LTL shipments fell 17% between 2021 and 2022, and another 5% in the first quarter compared to the first quarter a year earlier.
He said that while Yellow could be profitable when demand for trucking was strong, it couldn’t get by in the face of the slowdown in freight, and the drop in trucking rates that went with it. Shippers worried about Yellow’s future started shifting to other carriers, as its shipments fell 13% in the first quarter compared a year earlier.
“It’s what Warren Buffett says, when the tide goes out you discover who’s been swimming naked,” Nightingale said.
End of an era in trucking
When the trucking industry was deregulated nearly 40 years ago, the segment of the industry that handled full trailers of cargo, known as truckload, soon was dominated by non-union trucking companies. The only thing low-cost competitors needed to enter that segment of the industry was a truck.
But the LTL segment requires a network of terminals to sort incoming and outgoing freight. That limited, but did not prevent, the entry of low-cost competitors. So unionized carriers such as Yellow continued to be major players, even as non-union rivals grew.
Eventually non-union carriers came to dominate the LTL segment as well. By early in this century, many of the remaining unionized LTL carriers, including Yellow and rivals such as Roadway Express, New Penn and Holland, merged to survive.
Yellow, Roadway and a third company known as CF or Consolidated Freightways had once been known as the Big Three of the trucking industry. CF went out of business in 2002. And with Yellow Corp. closing, the final two parts of the Big Three are now out of business as well.
Todd Maiden
FREIGHT WAVES
Mon, July 31, 2023
Less-than-truckload carrier Yellow Corp. closes after 99 years in business.
Mon, July 31, 2023
Less-than-truckload carrier Yellow Corp. closes after 99 years in business.
(Photo: Jim Allen/FreightWaves)
The biggest bankruptcy in U.S. trucking history could occur in the coming days when the nation’s third-largest less-than-truckload carrier, Yellow Corp., files. The company ceased all operations at noon on Sunday, and leadership representing its Teamsters workforce said it had been notified of a pending bankruptcy filing.
The company is still shopping a small 3PL unit, which may delay a filing. However, it laid off most of its nonunion workforce last week and told union employees on Sunday afternoon not to show up.
While the Nashville, Tennessee-based company saw operations deteriorate rapidly in recent months as it unsuccessfully attempted to push through operational changes with its union workforce, its ultimate failure was anything but sudden.
Bankruptcy filing years in the making
A series of large LTL and other acquisitions in efforts to transform Yellow into a global transportation and logistics leader, the ambition of former Chairman and CEO William “Bill” Zollars, were the catalysts for an eventual downfall.
In 2003, Yellow acquired Roadway in a $1.1 billion deal and then leveraged up in 2005 to acquire USF for $1.47 billion. The goal was to emerge with a command position in the LTL space, allowing the company to leverage larger scale into greater operating and cost synergies.
A much bigger organization with a debt-laden balance sheet, the company took on the YRC Worldwide moniker in 2006 as it had become a holding company for numerous transportation and logistics brands operating in more than 70 countries around the world. In that year, it would see its revenue increase more than threefold since the buying spree began to nearly $10 billion, with earnings per share of roughly $5, or $277 million in net income. That would be the financial pinnacle for the company as a freight recession would take hold that year, followed by a near collapse in financial markets two years later.
However, YRC continued to grow through the freight downturn and with a more cumbersome debt profile in place.
A sign posted on terminal gates on Sunday. (Jim Allen/FreightWaves)
Further expansion of its logistics unit occurred in China with the 2007 acquisition of Shanghai Jiayu Logistics. This further fueled the company’s global growth initiatives. The deal complemented its existing freight forwarding and logistics joint ventures in China, which were established in 2005.
Failure to integrate acquisitions and its national LTL freight network (Yellow and Roadway’s national networks weren’t integrated until March 2009) along with its debt burden left the carrier bloated entering the Great Recession. Matters were further compounded by internal service issues and a rapidly declining freight environment, which was highlighted by fierce price competition as some carriers sought to hasten YRC’s demise by underbidding freight.
The leverage proved to be too much and nearly led to a bankruptcy filing in late 2009.
Debt-for-equity swaps, wage concessions and other financial reengineering
By the end of 2009, YRC was in a perilous position. It had to find a solution for pending debt payments and appease its union workforce, which had already consented to reduced wages. YRC was also tasked with attracting freight to its network as competitors underpriced the company and its customer base sought alternatives as both groups were planning for the carrier’s exit.
After months of credit agreement amendments and extensions from its lender group, YRC was finally able to craft a $470 million debt-for-equity deal in the closing hours of 2009. The deal deferred interest and fee payments to lenders through 2010 and provided the company with access to $160 million in liquidity under its revolving credit facility. The transaction wiped out existing shareholders, including union stakeholders, leaving former bondholders owning 94% of the company’s outstanding shares.
That deal was preceded by two rounds of wage concessions from union employees. In early 2009, the union agreed to 10% wage cuts in exchange for a 15% stake in the company. Later in the year, another round of wage cuts, this time an additional 5%, as well as an 18-month cessation of pension fund contributions, would be required to get the debt-for-equity deal done.
The following year, those wage concessions would be extended into 2015 (and eventually into 2019), and the company’s new pension contribution rate would be just 25% of the rate in place in 2009 — all part of Zollars’ final restructuring, which concluded in the summer of 2011. The union’s equity stake would increase to 25%, and it would get a second seat on the board in exchange. The day before the new deal was approved, YRC said Zollars would step down upon its completion.
The 2011 restructuring included $100 million in new capital for the company along with increased liquidity under a new $400 million loan. The debt-for-equity swap left existing shareholder positions reduced to just 2.5% of the outstanding stock.
That would cap Zollars’ career at the helm. He left the same day the transaction was completed, replaced as CEO by former Yellow Transportation head James Welch.
Zollars’ compensation (including cash, stock, changes in pension valuation and perks) totaled $2.5 million in the restructuring year of 2009. He earned more than $12 million in the three-year period ended 2009.
’09 restructuring was only the beginning
Saved from bankruptcy and with a little breathing room, YRC accelerated its corporate overhaul, which began in late 2009 as a bankruptcy filing was looming. Those efforts included divesting non-LTL offerings.
In late 2009, YRC unloaded its dedicated unit and in 2010, the company sold a stake in its logistics operations to private equity to provide incremental liquidity. In 2011, the carrier sold its truckload operations, Glen Moore, to now-defunct Celadon, and in 2012, it sold its stake in Shanghai Jiayu Logistics to its joint venture partner.
Other liquidity improvement measures were required along the way, including selling and leasing back facilities and reducing capital expenditures on equipment. Reverse stock splits would be required to prop up declines in the share price as a result of the equity dilution. The company completed a 1:25 reverse split in 2010 and a 1:300 split in 2011 to comply with Nasdaq listing requirements for shares to maintain a $1 level.
Facing debt maturities, Welch would complete a recapitalization that again included debt for equity in 2014 after tumultuous but ultimately successful negotiations with the union and the lending group. That transaction would relieve $300 million in debt and pave the way for the company to refinance $1.1 billion in debt, providing it with a more stable capital structure for a while.
However, years of neglecting to fund fleet and terminal upgrades led to higher operating costs and service inadequacies compared to peers, fueling a cycle of lower yields and continual underinvestment in the network. Its industry-lagging service scores — dead last among national providers — forced it to become a low-cost provider. Its inability to appropriately charge for the freight it hauled left it barely covering operating expenses in most quarters and booking losses when accounting for interest expense and other items.
In 2019, it was able to negotiate a collective-bargaining agreement that provided it flexibility around job classifications, work rules for part-time employees and the use of purchased transportation. It was also allowed the use of box trucks in LTL operations with non-CDL drivers. Teamsters would get a pay bump of 18% in aggregate throughout the five-year term (essentially a clawback of what they had given up), the restoration of one week of vacation and an increase in the contribution rate to health and welfare benefits.
The new labor deal also laid the framework for a broader overhaul that later became known as One Yellow, in which the carrier began consolidating its four LTL operating companies, closing redundant service centers and altering work rules for some employees, among other restructuring initiatives.
The same year, YRC executed a $600 million term loan refinance, which lowered the interest rate, provided additional liquidity and offered less restrictive covenants on a portion of its debt. The deal also extended the maturity by two years to June 2024.
The more favorable flexibility in its debt profile would be relatively short-lived as the industry was about to endure a COVID outbreak and subsequent lockdowns, which negatively impacted even the strongest carriers.
Controversial $700M Treasury loan not enough to save the ship
In short order, Yellow (officially renamed in 2021) blew through a $700 million infusion from the government in the form of a COVID-relief loan. The program was established shortly after the outbreak to help companies bridge liquidity gaps directly related to lost business from stay-at-home mandates.
Numerous trucks were parked Monday at a Yellow terminal in Houston. (Jim Allen/FreightWaves)
The first tranche of the loan was $300 million, which was used to clear the deck of the company’s immediate cash needs. It covered previously delayed health care and pension plan contribution payments, lease payments on equipment and real estate, and even interest payments on its other debt, among other items.
A $400 million second tranche was used to fund capital expenditures, largely the purchase of tractors and trailers, which received considerable scrutiny from industry participants. The thought on the part of the government may have been, “In for a penny, in for a pound.” Yellow estimated it would save $10,000 to $12,000 per tractor annually running newer models, and that the upgrades would be the key to reaching longer-term financial stability.
In total, the company replaced roughly 2,400 tractors (17% of the fleet) and 3,600 trailers, and it purchased 600 rail containers — executing roughly three years of tractor capex in a 15-month period. However, the new loan raised its total outstanding debt to nearly $1.6 billion from $880 million at the end of the 2020 first quarter (the last update prior to the loan announcement).
The Treasury’s issuance of the loan in July 2020 has been heavily scrutinized since. An oversight commission concluded recently there were many shortcomings in the decision-making process used to issue the loan.
A key concern all along was the company’s “precarious financial condition” prior to the pandemic given its history of operating at a loss and its poor credit ratings. Yellow’s financial profile and the Treasury’s “less favorable” lien position, compared to the company’s other creditors, present “significant” default risk to taxpayers, the commission found.
Yellow qualified for the loan under a Treasury-created “catch-all” category — “critical to maintaining national security.” The carrier was thought to handle 68% of the Defense Department’s LTL freight at the time, a number that the commission later estimated to be only between 20% and 40%. The commission also took issue with why LTL service couldn’t be handled by another carrier and why a backup plan for service wasn’t in place in the event Yellow shut down.
However, the commission ultimately acknowledged the loan program lacked established guidelines and underwriting was done on the fly as government authorities were required to move quickly to provide emergency liquidity. It provided future remedies should the need for another crisis-induced lending program arise.
At the end of the 2023 first quarter, Yellow owed the government $729.4 million, including capitalized interest. It had made total cash interest payments of $59.6 million by the end of May, according to a company representative.
In addition to collateral for the loan, the government received a 30% equity stake in Yellow, which would likely be wiped out if it files bankruptcy. Yellow’s two top-paid executives earned more than $6 million combined in total compensation the year the Treasury loan was issued.
No change of operations, no Yellow
In the end, Yellow’s inability to get a deal done with the union would prove fatal. Months of back and forth proved fruitless.
Running out of money and options, Yellow sued the union for breach of contract, saying the Teamsters didn’t have the right to reject the change of operations it asserted was vital to its survival. The company said the union also had dragged its feet in coming to the bargaining table when it was well aware Yellow would soon be out of funds.
Throughout the process, the union maintained it had already given enough in the form of billions in wages, benefits and pension concessions. It also said it wouldn’t allow Yellow to jump the line and rush negotiations as it was working on other labor deals with closer expiration dates. It offered to begin its normal collective-bargaining protocols, likely in August, or see the current contract through to its March 31, 2024, expiration.
Missed benefits payments to health, welfare and pension funds managed by Central States put the final nail in the coffin. The delinquency allowed the Teamsters to issue a strike notice, which spooked customers and brokers into accelerating the rate at which they were pulling freight out of the carrier’s network.
“The board members, especially those who represent the Teamsters, have not done service to the members or to the company,” Satish Jindel, founder of transportation advisory firm SJ Consulting Group, told FreightWaves.
He also faulted Yellow’s leadership for not taking pay cuts when it was desperately seeking concessions from the Teamsters.
“The board and the executives should have announced taking cuts in their compensation before asking for any accommodation from the rank and file,” Jindel said. “As they say — ‘leading by example.’ The failure of the company cannot be put at the feet of the Teamsters.”
The bankruptcy would mark the largest filing in U.S. trucking history. The last major LTL closure was Consolidated Freightways, the third-largest carrier in 2002 when it filed. That company was generating roughly $2.3 billion in revenue with 20,000 employees (14,500 of them Teamsters).
Yellow had 30,000 employees, including 22,000 Teamsters.
More FreightWaves articles by Todd Maiden
The biggest bankruptcy in U.S. trucking history could occur in the coming days when the nation’s third-largest less-than-truckload carrier, Yellow Corp., files. The company ceased all operations at noon on Sunday, and leadership representing its Teamsters workforce said it had been notified of a pending bankruptcy filing.
The company is still shopping a small 3PL unit, which may delay a filing. However, it laid off most of its nonunion workforce last week and told union employees on Sunday afternoon not to show up.
While the Nashville, Tennessee-based company saw operations deteriorate rapidly in recent months as it unsuccessfully attempted to push through operational changes with its union workforce, its ultimate failure was anything but sudden.
Bankruptcy filing years in the making
A series of large LTL and other acquisitions in efforts to transform Yellow into a global transportation and logistics leader, the ambition of former Chairman and CEO William “Bill” Zollars, were the catalysts for an eventual downfall.
In 2003, Yellow acquired Roadway in a $1.1 billion deal and then leveraged up in 2005 to acquire USF for $1.47 billion. The goal was to emerge with a command position in the LTL space, allowing the company to leverage larger scale into greater operating and cost synergies.
A much bigger organization with a debt-laden balance sheet, the company took on the YRC Worldwide moniker in 2006 as it had become a holding company for numerous transportation and logistics brands operating in more than 70 countries around the world. In that year, it would see its revenue increase more than threefold since the buying spree began to nearly $10 billion, with earnings per share of roughly $5, or $277 million in net income. That would be the financial pinnacle for the company as a freight recession would take hold that year, followed by a near collapse in financial markets two years later.
However, YRC continued to grow through the freight downturn and with a more cumbersome debt profile in place.
A sign posted on terminal gates on Sunday. (Jim Allen/FreightWaves)
Further expansion of its logistics unit occurred in China with the 2007 acquisition of Shanghai Jiayu Logistics. This further fueled the company’s global growth initiatives. The deal complemented its existing freight forwarding and logistics joint ventures in China, which were established in 2005.
Failure to integrate acquisitions and its national LTL freight network (Yellow and Roadway’s national networks weren’t integrated until March 2009) along with its debt burden left the carrier bloated entering the Great Recession. Matters were further compounded by internal service issues and a rapidly declining freight environment, which was highlighted by fierce price competition as some carriers sought to hasten YRC’s demise by underbidding freight.
The leverage proved to be too much and nearly led to a bankruptcy filing in late 2009.
Debt-for-equity swaps, wage concessions and other financial reengineering
By the end of 2009, YRC was in a perilous position. It had to find a solution for pending debt payments and appease its union workforce, which had already consented to reduced wages. YRC was also tasked with attracting freight to its network as competitors underpriced the company and its customer base sought alternatives as both groups were planning for the carrier’s exit.
After months of credit agreement amendments and extensions from its lender group, YRC was finally able to craft a $470 million debt-for-equity deal in the closing hours of 2009. The deal deferred interest and fee payments to lenders through 2010 and provided the company with access to $160 million in liquidity under its revolving credit facility. The transaction wiped out existing shareholders, including union stakeholders, leaving former bondholders owning 94% of the company’s outstanding shares.
That deal was preceded by two rounds of wage concessions from union employees. In early 2009, the union agreed to 10% wage cuts in exchange for a 15% stake in the company. Later in the year, another round of wage cuts, this time an additional 5%, as well as an 18-month cessation of pension fund contributions, would be required to get the debt-for-equity deal done.
The following year, those wage concessions would be extended into 2015 (and eventually into 2019), and the company’s new pension contribution rate would be just 25% of the rate in place in 2009 — all part of Zollars’ final restructuring, which concluded in the summer of 2011. The union’s equity stake would increase to 25%, and it would get a second seat on the board in exchange. The day before the new deal was approved, YRC said Zollars would step down upon its completion.
The 2011 restructuring included $100 million in new capital for the company along with increased liquidity under a new $400 million loan. The debt-for-equity swap left existing shareholder positions reduced to just 2.5% of the outstanding stock.
That would cap Zollars’ career at the helm. He left the same day the transaction was completed, replaced as CEO by former Yellow Transportation head James Welch.
Zollars’ compensation (including cash, stock, changes in pension valuation and perks) totaled $2.5 million in the restructuring year of 2009. He earned more than $12 million in the three-year period ended 2009.
’09 restructuring was only the beginning
Saved from bankruptcy and with a little breathing room, YRC accelerated its corporate overhaul, which began in late 2009 as a bankruptcy filing was looming. Those efforts included divesting non-LTL offerings.
In late 2009, YRC unloaded its dedicated unit and in 2010, the company sold a stake in its logistics operations to private equity to provide incremental liquidity. In 2011, the carrier sold its truckload operations, Glen Moore, to now-defunct Celadon, and in 2012, it sold its stake in Shanghai Jiayu Logistics to its joint venture partner.
Other liquidity improvement measures were required along the way, including selling and leasing back facilities and reducing capital expenditures on equipment. Reverse stock splits would be required to prop up declines in the share price as a result of the equity dilution. The company completed a 1:25 reverse split in 2010 and a 1:300 split in 2011 to comply with Nasdaq listing requirements for shares to maintain a $1 level.
Facing debt maturities, Welch would complete a recapitalization that again included debt for equity in 2014 after tumultuous but ultimately successful negotiations with the union and the lending group. That transaction would relieve $300 million in debt and pave the way for the company to refinance $1.1 billion in debt, providing it with a more stable capital structure for a while.
However, years of neglecting to fund fleet and terminal upgrades led to higher operating costs and service inadequacies compared to peers, fueling a cycle of lower yields and continual underinvestment in the network. Its industry-lagging service scores — dead last among national providers — forced it to become a low-cost provider. Its inability to appropriately charge for the freight it hauled left it barely covering operating expenses in most quarters and booking losses when accounting for interest expense and other items.
In 2019, it was able to negotiate a collective-bargaining agreement that provided it flexibility around job classifications, work rules for part-time employees and the use of purchased transportation. It was also allowed the use of box trucks in LTL operations with non-CDL drivers. Teamsters would get a pay bump of 18% in aggregate throughout the five-year term (essentially a clawback of what they had given up), the restoration of one week of vacation and an increase in the contribution rate to health and welfare benefits.
The new labor deal also laid the framework for a broader overhaul that later became known as One Yellow, in which the carrier began consolidating its four LTL operating companies, closing redundant service centers and altering work rules for some employees, among other restructuring initiatives.
The same year, YRC executed a $600 million term loan refinance, which lowered the interest rate, provided additional liquidity and offered less restrictive covenants on a portion of its debt. The deal also extended the maturity by two years to June 2024.
The more favorable flexibility in its debt profile would be relatively short-lived as the industry was about to endure a COVID outbreak and subsequent lockdowns, which negatively impacted even the strongest carriers.
Controversial $700M Treasury loan not enough to save the ship
In short order, Yellow (officially renamed in 2021) blew through a $700 million infusion from the government in the form of a COVID-relief loan. The program was established shortly after the outbreak to help companies bridge liquidity gaps directly related to lost business from stay-at-home mandates.
Numerous trucks were parked Monday at a Yellow terminal in Houston. (Jim Allen/FreightWaves)
The first tranche of the loan was $300 million, which was used to clear the deck of the company’s immediate cash needs. It covered previously delayed health care and pension plan contribution payments, lease payments on equipment and real estate, and even interest payments on its other debt, among other items.
A $400 million second tranche was used to fund capital expenditures, largely the purchase of tractors and trailers, which received considerable scrutiny from industry participants. The thought on the part of the government may have been, “In for a penny, in for a pound.” Yellow estimated it would save $10,000 to $12,000 per tractor annually running newer models, and that the upgrades would be the key to reaching longer-term financial stability.
In total, the company replaced roughly 2,400 tractors (17% of the fleet) and 3,600 trailers, and it purchased 600 rail containers — executing roughly three years of tractor capex in a 15-month period. However, the new loan raised its total outstanding debt to nearly $1.6 billion from $880 million at the end of the 2020 first quarter (the last update prior to the loan announcement).
The Treasury’s issuance of the loan in July 2020 has been heavily scrutinized since. An oversight commission concluded recently there were many shortcomings in the decision-making process used to issue the loan.
A key concern all along was the company’s “precarious financial condition” prior to the pandemic given its history of operating at a loss and its poor credit ratings. Yellow’s financial profile and the Treasury’s “less favorable” lien position, compared to the company’s other creditors, present “significant” default risk to taxpayers, the commission found.
Yellow qualified for the loan under a Treasury-created “catch-all” category — “critical to maintaining national security.” The carrier was thought to handle 68% of the Defense Department’s LTL freight at the time, a number that the commission later estimated to be only between 20% and 40%. The commission also took issue with why LTL service couldn’t be handled by another carrier and why a backup plan for service wasn’t in place in the event Yellow shut down.
However, the commission ultimately acknowledged the loan program lacked established guidelines and underwriting was done on the fly as government authorities were required to move quickly to provide emergency liquidity. It provided future remedies should the need for another crisis-induced lending program arise.
At the end of the 2023 first quarter, Yellow owed the government $729.4 million, including capitalized interest. It had made total cash interest payments of $59.6 million by the end of May, according to a company representative.
In addition to collateral for the loan, the government received a 30% equity stake in Yellow, which would likely be wiped out if it files bankruptcy. Yellow’s two top-paid executives earned more than $6 million combined in total compensation the year the Treasury loan was issued.
No change of operations, no Yellow
In the end, Yellow’s inability to get a deal done with the union would prove fatal. Months of back and forth proved fruitless.
Running out of money and options, Yellow sued the union for breach of contract, saying the Teamsters didn’t have the right to reject the change of operations it asserted was vital to its survival. The company said the union also had dragged its feet in coming to the bargaining table when it was well aware Yellow would soon be out of funds.
Throughout the process, the union maintained it had already given enough in the form of billions in wages, benefits and pension concessions. It also said it wouldn’t allow Yellow to jump the line and rush negotiations as it was working on other labor deals with closer expiration dates. It offered to begin its normal collective-bargaining protocols, likely in August, or see the current contract through to its March 31, 2024, expiration.
Missed benefits payments to health, welfare and pension funds managed by Central States put the final nail in the coffin. The delinquency allowed the Teamsters to issue a strike notice, which spooked customers and brokers into accelerating the rate at which they were pulling freight out of the carrier’s network.
“The board members, especially those who represent the Teamsters, have not done service to the members or to the company,” Satish Jindel, founder of transportation advisory firm SJ Consulting Group, told FreightWaves.
He also faulted Yellow’s leadership for not taking pay cuts when it was desperately seeking concessions from the Teamsters.
“The board and the executives should have announced taking cuts in their compensation before asking for any accommodation from the rank and file,” Jindel said. “As they say — ‘leading by example.’ The failure of the company cannot be put at the feet of the Teamsters.”
The bankruptcy would mark the largest filing in U.S. trucking history. The last major LTL closure was Consolidated Freightways, the third-largest carrier in 2002 when it filed. That company was generating roughly $2.3 billion in revenue with 20,000 employees (14,500 of them Teamsters).
Yellow had 30,000 employees, including 22,000 Teamsters.
More FreightWaves articles by Todd Maiden
Yellow is shutting down and headed for bankruptcy, the Teamsters Union says. Here's what to know
BY WYATTE GRANTHAM-PHILIPS
Mon, July 31, 2023
Yellow Corp. trucks are seen at a YRC Freight terminal Friday, July 28, 2023, in Kansas City, Mo. After years of financial struggles, Yellow is reportedly preparing for bankruptcy and seeing customers leave in large numbers — heightening risk for future liquidation. While no official decision has been announced by the company, the prospect of bankruptcy has renewed attention around Yellow's ongoing negotiations with unionized workers, a $700 million pandemic-era loan from the government and other bills the trucker has racked up over time.
BY WYATTE GRANTHAM-PHILIPS
Mon, July 31, 2023
Yellow Corp. trucks are seen at a YRC Freight terminal Friday, July 28, 2023, in Kansas City, Mo. After years of financial struggles, Yellow is reportedly preparing for bankruptcy and seeing customers leave in large numbers — heightening risk for future liquidation. While no official decision has been announced by the company, the prospect of bankruptcy has renewed attention around Yellow's ongoing negotiations with unionized workers, a $700 million pandemic-era loan from the government and other bills the trucker has racked up over time.
(AP Photo/Charlie Riedel)
NEW YORK (AP) — Trucking company Yellow Corp. has shut down operations and is headed for a bankruptcy filing, according to the Teamsters Union and multiple media reports.
After years of financial struggles, reports of Yellow preparing for bankruptcy emerged last week — as the Nashville, Tennessee-based trucker saw customers leave in large numbers. Yellow shut down operations on Sunday, according to the Wall Street Journal, following the layoffs of hundreds of nonunion employees on Friday.
In an announcement early Monday, the Teamsters said that the union received legal notice confirming Yellow was ceasing operations and filing for bankruptcy.
“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government,” Teamsters general president Sean O’Brien said in a statement. “This is a sad day for workers and the American freight industry.”
The Associated Press reached out to Yellow for comment on Monday. No bankruptcy filings had gone live as of the early morning.
The bankruptcy reports have renewed attention around Yellow’s ongoing negotiations with unionized workers, a $700 million pandemic-era loan from the government and other bills the trucker has racked up over time. Yellow, formerly known as YRC Worldwide Inc., is one of the nation’s largest less-than-truckload carriers. The company's reported closure puts 30,000 jobs at risk.
Here’s what you need to know.
WHAT WOULD BANKRUPTCY MEAN FOR YELLOW?
According to Satish Jindel, president of transportation and logistics firm SJ Consulting, Yellow handled an average of 49,000 shipments per day in 2022. Last week, he estimated that number was down to between 10,000 and 15,000 daily shipments.
With customers leaving — as well reports of Yellow stopping freight pickups last week — bankruptcy would “be the end of Yellow,” Jindel told The Associated Press, noting increased risk for liquidation.
“The likelihood of them surviving and remaining solvent diminishes really by the day,” added Bruce Chan, a research director at investment banking firm Stifel.
Yellow declined to comment when contacted by The Associated Press on Friday. In a Wednesday statement to The Journal, the company said it was continuing “to prepare for a range of contingencies.” On Thursday, Yellow said it was in talks with multiple parties about selling its third-party logistics organization.
Even if Yellow was able to sell its logistics firm, it would “not generate a sufficient amount of cash to keep them operational on any sort of permanent basis,” Chan said. “Without a major equity injection, it would be very difficult for them to survive.”
HOW MUCH DEBT DOES YELLOW HAVE?
As of late March, Yellow had an outstanding debt of about $1.5 billion. Of that, $729.2 million was owed to the federal government.
In 2020, under the Trump administration, the Treasury Department granted the company a $700 million pandemic-era loan on national security grounds. Last month, a congressional probe concluded that the Treasury and Defense Departments “made missteps” in this decision — and noted that Yellow’s “precarious financial position at the time of the loan, and continued struggles, expose taxpayers to a significant risk of loss.”
The government loan is due in September 2024. As of March, Yellow had made $54.8 million in interest payments and repaid just $230 million of the principal owed, according to government documents.
Yellow’s current finances and prospect of bankruptcy “is probably two decades in the making,” Chan said, pointing to poor management and strategic decisions dating back to the early 2000s. “At this point, after each party has bailed them out so many times, there is a limited appetite to do that anymore.”
In May, Yellow reported a loss of $54.6 million, a decline of $1.06 per share, for its first quarter of 2023. Operating revenue was about $1.16 billion in the period.
A Wednesday investors note from financial service firm Stephens estimated that Yellow could be burning between $9 million and $10 million each day. Using a liquidity disclosure from earlier this month, Yellow had roughly $100 million in cash at the end of June, the note added — estimating that the company has been burning through increasing amounts of money through July.
“It is reasonable to believe that the Company could breach its $35 mil. liquidity requirement at any moment,” Stephens analyst Jack Atkins and associate Grant Smith wrote.
DID THE COMPANY JUST AVERT A STRIKE?
Last week's reports of bankruptcy preparations arrived just days after a strike from the Teamsters, which represents Yellow’s 22,000 unionized workers, was averted.
A series of heated exchanges have built up between the Teamsters and Yellow, who sued the union in June after alleging it was “unjustifiably blocking” restructuring plans needed for the company’s survival. The Teamsters called the litigation “baseless” — with O’Brien pointing to Yellow’s “decades of gross mismanagement,” which included exhausting the $700 million federal loan.
On July 23, a pension fund agreed to extend health benefits for workers at two Yellow Corp. operating companies, averting a strike — and giving Yellow “30 days to pay its bills,” notably $50 million that Yellow failed to pay the Central States Health and Welfare Fund on July 15, the union said. While the strike didn’t occur, talks of a walkout may have caused some Yellow customers to pull back, Chan said.
“The financial struggles of Yellow are not related to the union and the contracts,” Jindel said, pointing to management’s responsibility around its services and prices. He added the union wages from Yellow are “lower than any competitor.”
WHAT WOULD HAPPEN IF YELLOW WENT UNDER?
As Yellow customers take their shipments to other carriers, like FedEx or ABF Freight, prices will go up.
Yellow’s prices have historically been the cheapest compared to other carriers, Jindel said. “That’s why they obviously were not making money,” he added. “And while there is capacity with the other LTL carriers to handle the diversions from Yellow, it will come at a high price for (current shippers and customers) of Yellow.”
Chan adds that we’re in an interesting time for the LTL marketplace — noting that, if Yellow liquidates, “the freight would find a home” with other carriers, which may not have been true in recent years.
“It may take time, but there’s room for it to be absorbed,” he said.
NEW YORK (AP) — Trucking company Yellow Corp. has shut down operations and is headed for a bankruptcy filing, according to the Teamsters Union and multiple media reports.
After years of financial struggles, reports of Yellow preparing for bankruptcy emerged last week — as the Nashville, Tennessee-based trucker saw customers leave in large numbers. Yellow shut down operations on Sunday, according to the Wall Street Journal, following the layoffs of hundreds of nonunion employees on Friday.
In an announcement early Monday, the Teamsters said that the union received legal notice confirming Yellow was ceasing operations and filing for bankruptcy.
“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government,” Teamsters general president Sean O’Brien said in a statement. “This is a sad day for workers and the American freight industry.”
The Associated Press reached out to Yellow for comment on Monday. No bankruptcy filings had gone live as of the early morning.
The bankruptcy reports have renewed attention around Yellow’s ongoing negotiations with unionized workers, a $700 million pandemic-era loan from the government and other bills the trucker has racked up over time. Yellow, formerly known as YRC Worldwide Inc., is one of the nation’s largest less-than-truckload carriers. The company's reported closure puts 30,000 jobs at risk.
Here’s what you need to know.
WHAT WOULD BANKRUPTCY MEAN FOR YELLOW?
According to Satish Jindel, president of transportation and logistics firm SJ Consulting, Yellow handled an average of 49,000 shipments per day in 2022. Last week, he estimated that number was down to between 10,000 and 15,000 daily shipments.
With customers leaving — as well reports of Yellow stopping freight pickups last week — bankruptcy would “be the end of Yellow,” Jindel told The Associated Press, noting increased risk for liquidation.
“The likelihood of them surviving and remaining solvent diminishes really by the day,” added Bruce Chan, a research director at investment banking firm Stifel.
Yellow declined to comment when contacted by The Associated Press on Friday. In a Wednesday statement to The Journal, the company said it was continuing “to prepare for a range of contingencies.” On Thursday, Yellow said it was in talks with multiple parties about selling its third-party logistics organization.
Even if Yellow was able to sell its logistics firm, it would “not generate a sufficient amount of cash to keep them operational on any sort of permanent basis,” Chan said. “Without a major equity injection, it would be very difficult for them to survive.”
HOW MUCH DEBT DOES YELLOW HAVE?
As of late March, Yellow had an outstanding debt of about $1.5 billion. Of that, $729.2 million was owed to the federal government.
In 2020, under the Trump administration, the Treasury Department granted the company a $700 million pandemic-era loan on national security grounds. Last month, a congressional probe concluded that the Treasury and Defense Departments “made missteps” in this decision — and noted that Yellow’s “precarious financial position at the time of the loan, and continued struggles, expose taxpayers to a significant risk of loss.”
The government loan is due in September 2024. As of March, Yellow had made $54.8 million in interest payments and repaid just $230 million of the principal owed, according to government documents.
Yellow’s current finances and prospect of bankruptcy “is probably two decades in the making,” Chan said, pointing to poor management and strategic decisions dating back to the early 2000s. “At this point, after each party has bailed them out so many times, there is a limited appetite to do that anymore.”
In May, Yellow reported a loss of $54.6 million, a decline of $1.06 per share, for its first quarter of 2023. Operating revenue was about $1.16 billion in the period.
A Wednesday investors note from financial service firm Stephens estimated that Yellow could be burning between $9 million and $10 million each day. Using a liquidity disclosure from earlier this month, Yellow had roughly $100 million in cash at the end of June, the note added — estimating that the company has been burning through increasing amounts of money through July.
“It is reasonable to believe that the Company could breach its $35 mil. liquidity requirement at any moment,” Stephens analyst Jack Atkins and associate Grant Smith wrote.
DID THE COMPANY JUST AVERT A STRIKE?
Last week's reports of bankruptcy preparations arrived just days after a strike from the Teamsters, which represents Yellow’s 22,000 unionized workers, was averted.
A series of heated exchanges have built up between the Teamsters and Yellow, who sued the union in June after alleging it was “unjustifiably blocking” restructuring plans needed for the company’s survival. The Teamsters called the litigation “baseless” — with O’Brien pointing to Yellow’s “decades of gross mismanagement,” which included exhausting the $700 million federal loan.
On July 23, a pension fund agreed to extend health benefits for workers at two Yellow Corp. operating companies, averting a strike — and giving Yellow “30 days to pay its bills,” notably $50 million that Yellow failed to pay the Central States Health and Welfare Fund on July 15, the union said. While the strike didn’t occur, talks of a walkout may have caused some Yellow customers to pull back, Chan said.
“The financial struggles of Yellow are not related to the union and the contracts,” Jindel said, pointing to management’s responsibility around its services and prices. He added the union wages from Yellow are “lower than any competitor.”
WHAT WOULD HAPPEN IF YELLOW WENT UNDER?
As Yellow customers take their shipments to other carriers, like FedEx or ABF Freight, prices will go up.
Yellow’s prices have historically been the cheapest compared to other carriers, Jindel said. “That’s why they obviously were not making money,” he added. “And while there is capacity with the other LTL carriers to handle the diversions from Yellow, it will come at a high price for (current shippers and customers) of Yellow.”
Chan adds that we’re in an interesting time for the LTL marketplace — noting that, if Yellow liquidates, “the freight would find a home” with other carriers, which may not have been true in recent years.
“It may take time, but there’s room for it to be absorbed,” he said.
AP Business Writer Matt Ott contributed to this report.
Box trailers and trucks are seen at Yellow Corp. trucking facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
(AP Photo/George Walker IV)
Safety vests for Yellow drivers Ron Fisher and J. Keilholz are zip-tied to fencing at the YRC Freight terminal as it lies closed in St. Louis, on Monday, July 31, 2023. Troubled trucking company Yellow Corp. is shutting down and filing for bankruptcy, the Teamsters said Monday. An official backruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
(Robert Cohen/St. Louis Post-Dispatch via AP)
A motorist passes a safety vest for Yellow driver Ron Fisher that was left zip-tied to the fence as the YRC Freight terminal lies shuttered in St. Louis, on Monday, July 31, 2023. Troubled trucking company Yellow Corp. is shutting down and filing for bankruptcy, the Teamsters said Monday. An official backruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
A motorist passes a safety vest for Yellow driver Ron Fisher that was left zip-tied to the fence as the YRC Freight terminal lies shuttered in St. Louis, on Monday, July 31, 2023. Troubled trucking company Yellow Corp. is shutting down and filing for bankruptcy, the Teamsters said Monday. An official backruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
(Robert Cohen/St. Louis Post-Dispatch via AP)
A Yellow box trailer blocks the entrance to the shuttered YRC Freight terminal in St. Louis, on Monday, July 31, 2023. Troubled trucking company Yellow Corp. is shutting down and filing for bankruptcy, the Teamsters said Monday. An official backruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
A Yellow box trailer blocks the entrance to the shuttered YRC Freight terminal in St. Louis, on Monday, July 31, 2023. Troubled trucking company Yellow Corp. is shutting down and filing for bankruptcy, the Teamsters said Monday. An official backruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
(Robert Cohen/St. Louis Post-Dispatch via AP)
Box trailers are seen at Yellow Corp. trucking facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
A sign for Yellow Corp. trucking company stands outside its facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
Box trailers and trucks are seen at Yellow Corp. trucking facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
Box trailers are seen at Yellow Corp. trucking facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
A sign for Yellow Corp. trucking company stands outside its facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
Box trailers and trucks are seen at Yellow Corp. trucking facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
Box trailers are seen at Yellow Corp. trucking facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
A sign for Yellow Corp. trucking company stands outside its facility Monday, July 31, 2023 in Nashville, Tenn. The troubled trucking company is shutting down and filing for bankruptcy, the Teamsters said Monday. An official bankruptcy filing is expected any day for Yellow, after years of financial struggles and growing debt.
AP Photos/George Walker IV
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