YELLOW CORP NEW COM (NASDAQ:YELL) attorney Allyson Smith reportedly disclosed getting an acquisition offer from Estes Express.
Trucking Firm Estes Express proposed a $1.3 billion offer to buy Yellow Corp’s shipment centers, said Reuters.
As a part of the bid, Estes had offered to provide a bankruptcy loan.
However, Yellow had decided to accept a $142.5 million loan offer from hedge fund Citadel and MFN Partners, its largest shareholder.
Related: Yellow Pushes Bankruptcy Loan Talks, Will Select Favorable Deal By Next Week: Report
Apart from this, Citadel bought Yellow’s pre-bankruptcy debt of around $500 million.
The new loan reflects a 180-day period for Yellow to solicit higher bids for its real estate assets and divest its fleet of trucks.
The report noted that Estes’ offer to buy the shipping terminals almost covers all of Yellow’s pre-bankruptcy debt, including over $700 million owed to the U.S. Treasury Department.
Recently, Yellow filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
Recently, Yellow reported Q2 EPS of $(0.28), beating the consensus of $(0.96) and sales of $1.13 billion, missing the consensus of $1.20 billion.
