© Reuters. SUBMIT IMAGE: Semi truck trailers are visualized at freight trucking business Yellow’s terminal near the Otay Mesa border crossing in between the U.S. and Mexico, after the business applied for insolvency defense, in San Diego, California, U.S., August 7, 2023
By Juby Babu
( Reuters) – Trucking company Estes Express has actually sent a modified stalking horse quote worth $1.525 billion in money for insolvent Yellow (OTC:-RRB- Corp’s delivery centers, according to a personal bankruptcy court filing on Wednesday.
Yellow stated Estes’ brand-new quote is the very best and exceptional to Old Rule Freight (NASDAQ:-RRB- Line Inc’s $1.5 billion August stalking horse quote.
Independently held Estes had actually sent a $1.3 billion quote last month to get Yellow’s delivery centers.
A stalking horse quote is a preliminary quote on the possessions of an insolvent business, setting the low-end bidding bar so that other bidders can not underbid the purchase cost.
” Estes Stalking Horse Quote is an enhancement over the Old Rule Quote since it provides more cash for the Obtained Properties and less charges in regards to quote defenses,” Yellow stated in a filing with the U.S. Personal Bankruptcy Court in Delaware.
Estes likewise provided a lower separation charge and other monetary terms.
In the filing, Yellow stated about 540 potential buyers of the possessions have actually called the business to date, and insolvency consultant Ducera Partners and 307 have actually performed privacy contracts to examine the possessions.
Yellow halted operations on July 30 and applied for insolvency early last month, blaming the International Brotherhood of Teamsters union that represents about 22,000 of its staff members for the business’s death.
The almost 100-year-old business applied for insolvency with simply $39 million money on hand, which it stated was insufficient to run a months-long insolvency sale for its 12,000 trucks, realty holdings and other possessions.