A Delaware bankruptcy court, last Friday, granted permission for Yellow Corp.’s estate to sell its fleet of vehicles through auction houses. The estate had previously made an agreement with Nations Capital, Ritchie Brothers, and IronPlanet on October 16 to facilitate this sale. Initially, the court delayed approval to allow time for the U.S. Trustee’s office to raise potential objections.

Ultimately, the court sided with the Trustee’s office in requiring one of the auction house affiliates to demonstrate their impartiality and confirm that their interests do not conflict with those of Yellow’s estate. However, Judge Craig Goldblatt urged that the order should proceed promptly due to time constraints, cautioning that the decision could be reversed if conflicts arise later on.

A request to keep the commission structures of the auction houses confidential was withdrawn on the same day.

This court decision now paves the way for the liquidation of Yellow’s fleet. The company, which was previously a less-than-truckload carrier, had a fleet of over 60,000 units, including approximately 12,000 tractors and 35,000 trailers.

The choice to use liquidation companies stems from Yellow’s inability to handle the equipment logistics, preparation, and marketing. Previous documents indicated that the liquidators would offer free storage for these units, which was estimated to cost the estate more than $10 million monthly.

The liquidation process includes about 2,400 tractors and 3,500 trailers purchased by Yellow using part of a $700 million COVID-relief loan from the U.S. Treasury. The Treasury holds a secured creditor status in the estate and expects to recover more than $737 million, which includes outstanding principal and interest, as Yellow’s assets are sold off.

Earlier filings showed support from both the Treasury and an unsecured creditors committee for the use of liquidators in this process, which is anticipated to take about six months.

Bids for Yellow’s 174 owned terminals are due by November 9, with an auction scheduled for the end of November if necessary. Estes Express Lines’ $1.525 billion stalking horse bid has been selected as the starting bid for the auction.