NEW YORK (Reuters) – Trucking firm Yellow Corp will extend negotiations on a bankruptcy loan until next week, seeking to explore at least two alternative loan proposals that would provide the company with $142.5 million in new cash, the company’s attorney said in court on Friday.
Yellow filed for bankruptcy on Sunday with a loan offer for that amount from private equity firm Apollo, which was a senior lender to the company before its bankruptcy. The trucking company said earlier this week that it was seeking alternative financing from MFN Partners, an investment firm that owns 41% of Yellow’s stock, and Estes Express Lines, a rival in freight trucking.
Yellow is continuing to negotiate those offers, and it has received other loan offers in the past few days, Yellow’s attorney Pat Nash told U.S. Bankruptcy Judge Craig Goldblatt at a Friday court hearing in Wilmington, Delaware. Yellow will likely choose one of the loans, which are “much more favorable” than Apollo’s initial proposal, by early next week, Nash said.
(Reporting by Dietrich Knauth; Editing by Mark Porter and Andrea Ricci)
