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Dive Summary:
- Yellow Corp.’s competitors agreed to spend $82.9 million on the leases of another 23 properties in a subsequent round of bidding, the company said in bankruptcy courts Wednesday.
- Estes Express Lines and FedEx Freight spent the most, with Estes paying $35.3 million and FedEx offering $22.5 million. But Saia is ready to walk away with the most properties, almost a dozen.
- Yellow sold 128 properties and two leases in an initial round of bidding that began in late November. More than 100 other owned and leased properties have yet to be auctioned, according to another deposit.
Yellow property rental offers
Dive Insight:
Carriers XPOEstes, Saia and Knight-Swift had previously taken over a dozen Yellow properties each, receiving court approval this month.
But the leases acquired in this round are poised to expand further LTL providers’ networks, especially in the US Northwest and Midwest.
For Saia, these leased terminals are spread across Montana, Wyoming, the Dakotas, Utah, Nevada and California.
Meanwhile, in FedEx Freight’s only pickup at the auction so far, the company’s LTL arm spent all of $22.5 million at a single terminal in Sparks, Nevada.
The latest bids bring the total amount offered for Yellow’s assets to $1.96 billion, more than enough to pay off the carrier’s more than $1 billion in debt.