Reuters reported on Tuesday that Yellow Corp’s assets have attracted substantial bidders, with the potential sale potentially surpassing its $1.4 billion secured debt.
Fox Business journalist Charles Gasparino stated on Twitter that if significant unsecured debt creditors do not emerge, stock holders will receive a payday.
Following the news, the company’s shares experienced a 24% surge in regular trading and dropped by 16% in extended trading.
On Monday, Yellow, a major player in the “less-than-truckload” market, filed for Chapter 11 bankruptcy protection, leaving approximately 30,000 employees to search for new employment opportunities.
The company pointed fingers at the International Brotherhood of Teamsters, which represents around 22,000 employees, for the bankruptcy filing.
Yellow’s assets were being sought by bidders due to the absence of Teamsters membership in its bankruptcy, as per Gasparino.
According to Gasparino, Yellow is expected to seek damages from the Teamsters for its entire enterprise worth $1.5 billion.
Ananta Agarwal reported from Bengaluru, while Shinjini Ganguli edited.