Teamsters Union vs Yellow trucking and UPS

Shortly after less-than-truckload carrier Yellow Corp. said Tuesday it would go through with plans to defer required contributions to funds managed by Central States Funds, the International Brotherhood of Teamsters issued a strike notice.

The notice said a work stoppage could occur as soon as Monday.
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Yellow and the Teamsters have been unable to reach an agreement on operational changes that the carrier says are necessary for it to remain in business.

The Teamsters statement said the company has until Sunday to make the payment.
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Yellow Corp.’s Chapter 11 filing has thrust a $700 million federal loan the company received during the Covid-19 pandemic into the spotlight.

On Sunday the beleaguered Nashville, Tenn.,-based trucking company announced its bankruptcy filing, which it blamed on the Teamsters union. On Monday, in a statement posted on the Teamsters website, the union accused Yellow of squandering a $700 million bailout.

Yellow told MarketWatch that the use of the CARES Act loan proceeds was carefully prescribed by the Treasury and Yellow followed all guidelines.

As part of the bailout deal, the government took an almost 30% stake in YRC Worldwide, as Yellow was formerly known, making the U.S. Department of Treasury the company’s second-largest shareholder.
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pmbug said:

More:

As Yellow files for chapter 11, $700 million pandemic bailout is in the spotlight

The $700 million federal loan made to Yellow in 2020 has sparked criticism.

www.marketwatch.com

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Cigarlover said:

Reminds me of Solyndra. A billion dollar loan and 1 year later bankrupt. Of course we never got any of the details on that one since the FBI went in and "secured" all the files. More than likely just another scheme where money is stolen from tax payers and put through these fake corporations and back into the pockets of the politicians and their families.
That was under Obama and now this one is ...well, is also under Obama.

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Voodoo said:

The Unions did all they could to take down Yellow. They were a very well paid job all along. UPS is the same way. Those guys make very good money for what they do. These managements simply said enough and will look to reorganize.

Is most of Wall St corrupt and will they take down good companies, sure. But this is on everyone involved.

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Executives, attorneys, creditors, and many others invested in the wind-down of Yellow Corp. will gather Sept. 15 for a key hearing in U.S. Bankruptcy Court in Delaware that should answer several questions about how the shuttered carrier’s case and auctions of substantial assets will proceed in the coming weeks.

The hearing could add clarity to some important questions in Yellow’s filing and perhaps reveal bidders who haven’t yet gone public with their interest in what remains of the almost 100-year-old company.
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What are the chances equity holders, including the U.S. government, see some proceeds?

The answer to this question is quite dependent on how the legal questions above are resolved, which is why Singer said he would be surprised if MFN and the federal government—which owns 30% of Yellow’s shares via the deal for the CARES Act loan—recover something from their stock holdings.

First in line to be paid back with auction proceeds are secured creditors, mainly Citadel as owner of about $485 million of debt and the federal government in its role as CARES Act lender. In all, Yellow’s balance sheet as of June 30 showed nearly $1.5 billion in long-term debt—conveniently the amount Old Dominion has bid for the company’s real estate.

Unsecured creditors will be next and will be led by the Teamsters and the Pension Benefit Guaranty Corp. They will essentially be paid with proceeds from truck and trailer sales. Equity investors will be paid much later if there’s money left over once unsecured creditors—they also include municipalities, railways, suppliers, and dozens of other entities—as well as Citadel and MFN, this time in their roles as debtor-in-possession financiers, are repaid.
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