Estes Express has made an offer of $1.3 billion as part of a bid for Yellow’s shipping centers in the wake of the company’s bankruptcy filing.
Estes initially included a bankruptcy loan as part of its bid for the properties, but Yellow instead accepted a $142.5 million loan from hedge fund Citadel and MFN Partners, one of Yellow’s largest shareholders, reported Reuters.
As part of the accepted bankruptcy loan, Yellow is allowed a 180 day period to seek higher bids for its real estate properties and to sell off its fleet of tractor trailers. The offer from Estes covers nearly all of Yellow’s pre-bankruptcy debt.
Yellow filed for bankruptcy on August 6th with $39 million worth of cash, which they claimed was not enough funds to run a months-long sale of all of their assets. Yellow has since blamed its failed business on a labor dispute with the Teamsters Union. The union claims the company “mismanaged” its way to collapse.