Yellow Corporation and certain of its direct and indirect subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware for the company’s planned operational wind-down.
To facilitate this process, the company expects to enter into an agreement to set forth the terms and conditions of a debtor-in-possession financing facility. Upon approval by the bankruptcy court and the satisfaction of the conditions set forth in the agreement, the DIP facility will provide the company with liquidity to support the businesses throughout the marketing and sale process, including payment of certain prepetition wages.
The company and its subsidiaries will continue to manage their businesses and properties as debtors-in-possession under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the bankruptcy code and orders of the bankruptcy court. The company filed multiple motions with the bankruptcy court designed to facilitate the company’s orderly wind-down of the businesses. Certain of these motions seek authority from the bankruptcy court for the company to make payments upon, or otherwise honor, certain obligations that arose prior to the filed voluntary petitions, including obligations related to employee wages, salaries and benefits, taxes, and certain vendors and other providers of goods and services essential to the company’s businesses. The company expects that the bankruptcy court will approve the relief sought in these motions on an interim basis.
“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” Darren Hawkins, CEO of Yellow Corporation, said. “Today, it is not common for someone to work at one company for 20, 30, or even 40 years, yet many at Yellow did. For generations, Yellow provided hundreds of thousands of Americans with solid, good-paying jobs and fulfilling careers.”
Kirkland & Ellis is serving as Yellow Corporation’s restructuring counsel, while Pachulski Stang Ziehl & Jones is serving as the company’s Delaware local counsel. In addition, Kasowitz, Benson and Torres is serving as special litigation counsel, Goodmans is serving as the company’s special Canadian counsel, Ducera Partners is serving as the company’s investment banker, and Alvarez and Marsal is serving as the company’s financial advisor.
