Court OKs second Yellow terminal sale; liquidation only half complete

A Delaware bankruptcy court blessed the sale of 23 of bankrupt less-than-truckload carrier Yellow’s leased service centers on Friday. The second round of terminal sales will fetch $83 million, according to court filings.

A Dec. 20 filing with the court originally showed the results from the two-day auction that began on Dec. 18. The latest transactions were said to represent “the highest or otherwise best offer” for the assets.

A hearing scheduled for Friday was canceled as all objections to the sales had been resolved. In recent weeks, numerous landlords had filed objections with the court, claiming that cost-to-cure estimates provided by Yellow showed amounts much smaller than those actually due for repairs and back rent. Some of the property owners also wanted additional time to vet their new LTL tenants.

The first round of terminal sales included 130 terminals, most of which were owned, and raked in nearly $1.9 billion.

FedEx Freight (NYSE: FDX) was a newcomer to the proceedings with a winning bid for one terminal near Reno, Nevada, valued at $22.5 million. The nation’s largest LTL carrier undertook a plan last spring to unload 29 terminals, predominately in the Midwest, in efforts to right-size its national network.

The rest of the winning bids in the second auction were from five other carriers that were also active in the first round.

Source: freightwaves.com