Congressional pressure is increasing on the U.S. Treasury to assist Yellow, a trucking giant, in avoiding bankruptcy. Letters from both Republicans and Democrats, which have been seen by RushHourDaily, demonstrate this growing pressure.
On Thursday, Republican Senator Josh Hawley joined the ranks of lawmakers requesting that Treasury extend the terms of a controversial $700 million pandemic loan that was granted to Yellow by the Trump administration.
This request follows separate letters sent by Republican Senator Roger Marshall and Democrats Sherrod Brown and Bob Casey last month. Additionally, Democratic senators Elizabeth Warren and Ed Markey sent their own letters earlier this week.
The push from both Republicans and Democrats for Treasury’s assistance could benefit Jack Cooper, one of the largest privately owned auto transport companies in the U.S. Jack Cooper is making a long-shot bid to rescue Yellow from bankruptcy liquidation.
A crucial aspect of Jack Cooper’s bid is convincing Treasury to extend the loan, which is currently due at the end of September 2024, to the same time in 2026. This extension would allow Jack Cooper to offer more favorable terms for Yellow.
In a letter, Hawley emphasized that modifying the repayment terms would enable Yellow to find a buyer who would keep the company’s assets intact and continue its operations in the trucking sector. Hawley noted reports of a potential buyer.
Hawley further stated that making Yellow’s loan repayment terms more flexible is a sensible step to keep the company’s trucks on the road and maintain employment for its workforce.
Yellow, previously known as YRC, is one of the largest less-than-truckload carriers in the U.S. Its customer base includes major companies such as Walmart and Home Depot.
The Biden administration is exploring options to allow Yellow to continue operating, driven by the International Brotherhood of Teamsters union, which suffered a loss of approximately 22,000 jobs.
According to Yellow’s bankruptcy court filing, the company’s assets consist of 12,000 trucks, 35,000 trailers, and numerous terminals. Yellow plans to sell the trucks and real estate separately.
In its bankruptcy filing, Yellow disclosed $2.15 billion in assets and $2.59 billion in debt.
A final decision from Treasury regarding the extension of the loan is expected this month as the bankruptcy process progresses towards a potential asset sale.
Reporting by Jarrett Renshaw in Philadelphia. Editing by Heather Timmons and Matthew Lewis.
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