Old Dominion Freight Line, a major player in less than truckload transportation, has proposed a deal worth $1.5 billion to acquire Yellow Corp.’s extensive network of 169 terminals across the country. This offer surpasses the previous bid of $1.3 billion put forth by their competitor, Estes Express Lines.
Yellow Corp., currently undergoing Chapter 11 bankruptcy proceedings, is putting all its substantial real estate assets on the market for sale. The decision to file for bankruptcy was made on August 18th, following an earlier announcement of the company’s intention to halt its operations.
According to The Wall Street Journal, the offer from Old Dominion Freight Line would encompass the debt that Yellow Corp. had taken on prior to entering bankruptcy proceedings. The Journal also notes that Old Dominion’s proposal is contingent on the possibility of more competitive bids arising during a court-supervised auction for Yellow’s assets.
With a presence in 48 states, Old Dominion operates 256 terminals. The company, headquartered in Thomasville, North Carolina, boasts a workforce of 24,000 individuals, which includes 12,000 drivers.
In the documents submitted for its bankruptcy, Yellow Corp. is reported to have possessed assets valued at $2.15 billion, along with liabilities totaling $2.59 billion. This figure incorporates a $700 million debt owed to the federal government as part of a loan acquired during the pandemic.
Additionally, Yellow Corp. is preparing to liquidate its fleet of approximately 12,700 tractors and 42,000 trailers.
