This article originally appeared in The New York Times. Hawkins said the company intended to pay back the government loan “in full.” Yellow aims to sell “all or substantially all” of its assets, according to court documents. It could end up assuming or trying to sell off much of the company’s fleet of trucks and terminals. The federal government assumed a 30% equity stake in Yellow in exchange for the loan. Yellow has paid approximately $66 million in interest on the loan, but it has repaid just $230 of the principal owed on the loan, which comes due next year. As of the end of March, Yellow’s outstanding debt was $1.5 billion, including about $730 million that it owed to the federal government. Since then, Yellow changed its name and embarked on a restructuring plan to help revive its flagging business by consolidating its regional networks of trucking services under one brand. Lured into India's get-rich-quick selling schemes. Top News Headlines Today: Find current Top Stories in India from India Today. Government watchdogs have scrutinized the loan because of the company’s financial turmoil and close ties to the Trump administration, which awarded the loan. Investigations and in-depth reporting on the world of social media. The loan was awarded as part of the $2.2 trillion pandemic-relief legislation that Congress passed that year, and Yellow received it on the grounds that its business was critical to national security because it shipped supplies to military bases. Yellow, which formerly went by the name YRC Worldwide, received the $700 million loan during the summer of 2020 as the pandemic was paralyzing the U.S. It also underscores the risks associated with government bailouts that are awarded during moments of economic panic. The downfall of the 99-year-old company will lead to the loss of about 30,000 jobs and could have ripple effects across the nation’s supply chains. The Google Trends homepage (/trends) features clustered topics that Google detects are related and trending together on either Search, Google News. A couple from neighbouring Tamil Nadu has been arrested for. Press Trust of India Sunday July 23, 2023, Bengaluru. Yellow filed a so-called Chapter 11 petition in U.S. Get the latest news, top headlines, opinions, analysis and much more from India and World including current news headlines on elections, politics, economy. Tamil Nadu Couple Fake Accident, Hijack Lorry With 2.5 Tonnes Of Tomato. organised jointly by Fashion Design Council of India (FDCI) and Hyundai Motor India, will be held from July 25 to August 2 at the Taj Palace hotel here. “It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” the company’s CEO, Darren Hawkins, said in a statement. Lifestyle News Lifestyle News - Read the latest Lifestyle News, Health Tips, Fashion Trends, Beauty Tips, photos, videos at. Three years after receiving a $700 million pandemic-era lifeline from the federal government, struggling freight trucking company Yellow is filing for bankruptcy.Īfter monthslong negotiations between Yellow’s management and the Teamsters union broke down, the company shut its operations late last month, and said Sunday that it was seeking bankruptcy protection so it could wind down its business in an “orderly” way.
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