Yellow Satisfies Debt Obligations, Repays $700 Million Covid Loan with Interest

Benzinga

The bankrupt trucking company Yellow has fully repaid the $700 million Covid loan from the U.S. Treasury, plus over $151 million in interest. The repayment comes after a bankruptcy judge approved Yellow selling most of its shipping centers and real estate for nearly $1.9 billion in December. Unsecured creditors, including employee pension funds, are seeking billions in payouts from what remains of Yellow.

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00:00 It's Benzinga and here's what's on the block.

00:02 Bankrupt trucking company Yellow has fully repaid the 700 million dollar COVID loan from the U.S.

00:07 Treasury plus over 151 million dollars in interest. The repayment comes after a bankruptcy

00:12 judge approved Yellow selling most of its shipping centers and real estate for nearly 1.9 billion

00:16 dollars in December. Unsecured creditors including employee pension funds are seeking billions in

00:21 payouts from what remains of Yellow. The Teamsters union condemned Yellow's management for not

00:25 reflecting workers five billion dollars in concessions over 10 years in their financial

00:29 decisions. While Yellow attributed their liquidity problem to the Teamsters refusal to defer pension

00:33 payments last year, Yellow faced a 1.3 billion dollar debt maturity this year which encompassed

00:38 a 700 million dollar CARES Act loan granted in 2020 for companies vital to national security

00:43 during the COVID-19 pandemic. For all things money visit Benzinga.com

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