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© Reuters.
(Reuters) -Money-strapped U.S. trucking firm Yellow Corp (NASDAQ:) has ceased operations and is submitting for chapter after failing to reorganize and refinance over a billion {dollars} in debt, the Teamsters Union stated on Sunday.
Yellow, previously known as YRC Worldwide, didn’t instantly reply to a Reuters request for remark.
Earlier this month Yellow averted a threatened strike by 22,000 Teamsters-represented staff and final week it stated it was exploring alternatives to divest its third-party logistics firm.
“Yellow has traditionally confirmed that it couldn’t handle itself regardless of billions of {dollars} in employee concessions and lots of of hundreds of thousands in bailout funding from the federal authorities,” Teamsters Basic President Sean M O’Brien stated in a press release.
The corporate was the third-biggest U.S. trucker specializing within the less-than-truckload section that mixes shipments from totally different prospects in the identical trailer.
Its prospects included giant retailers like Walmart (NYSE:) and Dwelling Depot (NYSE:), producers and Uber (NYSE:) Freight, a few of which paused cargo shipments to the corporate for worry these items might be misplaced or stranded if the service went bankrupt.
The corporate stated in June that the Teamsters Union was blocking restructuring and modernization efforts, collectively often known as “One Yellow”, which it stated had been important for Yellow’s survival and talent to refinance about $1.3 billion of debt attributable to be repaid by 2024.
A part of that debt is a $700 million pandemic aid mortgage supplied in 2020 by the Donald Trump-led U.S. authorities in alternate for a 30% stake within the Nashville, Tennessee-based firm.
Earlier within the day, the Wall Avenue Journal reported the closure of the trucking agency’s operations citing notices despatched to prospects and staff. On Friday, the WSJ additionally reported that the corporate has laid off numerous nonunion staff.
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