Car-hauler Jack Cooper Transport makes bid for Yellow Corp. contingent on government extending terms of Yellow’s $700 million unpaid COVID loan.
Jack Cooper Transport, a large privately owned auto transport company, is making a bid to save Yellow from bankruptcy liquidation looming in November. The deal would bring back 30,000 union jobs, but hinges on the decision of the US Treasury regarding Yellow’s $700 million in unpaid COVID Pandemic loans.
According to Reuters, the loans are due in September of 2024, but Jack Cooper, along with the International Brotherhood of Teamsters union and a bipartisan group of U.S. senators, are pressing the Treasury to push the due date to 2026. This pushback would allow for Jack Cooper to make a more favorable offer to Yellow because they would have more time to pay back the loans.
Jack Cooper Officials and Teamsters have reportedly been speaking with the Biden administration to get support for extending the terms of the loan. The Treasury is currently investigating whether or not it can extend the loan.
The Treasury, Jack Cooper, and the Teamsters have declined to comment on the situation. Jack Cooper serves General Motors and Ford as some of its main customers.