Estes Express Lines, the Richmond, Virginia-based LTL carrier, has increased its offer to purchase the terminals of Yellow Corp., which filed for bankruptcy in August.
Estes’s latest bid is for $1.525 billion, according to a report by Reuters. It had originally offered $1.3 billion, only to have that bid topped by Old Dominion Freight Lines, which offered $1.5 billion.
All of Yellow’s vast real estate holdings are up for sale as part of the company’s Chapter 11 bankruptcy liquidation. Yellow filed for bankruptcy Aug. 6 after announcing it was ceasing operations July 30 after years of financial struggles.
In its bankruptcy filing, Yellow is said to have had $2.15 billion in assets, and $2.59 billion in liabilities, including the $700 million it owes the federal government for a pandemic-era loan.`
Yellow will also sell off its fleet of some 12,700 tractors and 42,000 trailers.
Estes has 280 terminals in the U.S. and Canada. The company earlier this year opened two new terminals, one in New Orleans and the other in Banning, California.
The company employs 10,100 drivers and a total of 22,100 employees.
Yellow filed for bankruptcy, blaming the Teamster’s union for its demise. The company said the drivers’ union refused to go along with the company’s plan to streamline its operations.
The Teamsters, which threatened a strike in late July over unmade benefit payments, blamed Yellow’s closing on incompetent management.
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