Auction moves 2nd lot of Yellow terminals

A second lot of Yellow’s terminals have found new homes, according to a Wednesday filing in a Delaware bankruptcy court. The latest auction for a portion of the defunct less-than-truckload carrier’s leased properties raked in $83 million across 23 locations.

The first wave, which included 130 terminals — only two of which were leased — fetched nearly $1.9 billion.

Carriers that participated in the first auction again hold winning bids.

The recent auction, which included winning bids from just six LTL carriers, occurred Monday and Tuesday. Estes holds the largest bid at $35.3 million for five properties. The carrier previously locked up 24 terminals valued at $248.7 million.

RAMAR Land Corp. (R+L Carriers) landed three terminals valued at $9 million. The carrier took home $211.5 million in real estate in the first auction.

Saia (NASDAQ: SAIA) has a winning bid for 11 sites at $7.9 million across several Western states with a concentration in Montana, South Dakota and Wyoming. It won 17 terminals for $235.7 million earlier this month.

Other bidders included ArcBest (NASDAQ: ARCB) with one property in Bethlehem, Pennsylvania, at a value of $7.8 million and Knight-Swift (NYSE: KNX), which got two properties at a little more than $400,000 in Montana and Washington.

FedEx Freight (NYSE: FDX), which wasn’t active in the prior auction, walked away with a winning bid of $22.5 million for one terminal outside of Reno, Nevada.

Bidder Terminal count Purchase price

Estes 5 $35.3M

FedEx Freight 1 $22.5M

RAMAR Land Corp. (R+L Carriers) 3 $9.0M

Saia 11 $7.9M

ArcBest 1 $7.8M

Knight-Swift 2 $417,150

Table: U.S. Bankruptcy Court — District of Delaware filing

The sale of Yellow’s leased properties also requires the new tenants to pay costs to cure the current leases as Yellow was delinquent in rent payments and had failed to make required repairs in many locations.

“Winning bids for certain properties include additional payments for cure costs in addition to the cash purchase price noted herein,” the filing read.

There are still 118 leased properties remaining to be sold as well as another 46 terminals that the company owns.

Source: freightwaves.com