Trucking giant Old Dominion Freight Line Inc. has put forth a substantial offer of $1.5 billion to acquire Yellow Corp.'s 169 terminals, a move that surpasses the earlier bid made by Estes Express Lines. This development emerged as papers were filed on August 18 in Delaware bankruptcy court. Old Dominion's bid, which serves as a stalking horse offer, eclipses Estes' proposed $1.3 billion bid announced on August 17. The outcome of this ongoing tussle will establish a floor price for the terminals at a forthcoming Chapter 11 auction.
Notably, Yellow and Estes Express Lines have yet to provide comments regarding the competing offers. The details of Old Dominion's bid were first reported by Petition, a publication dedicated to corporate distress and bankruptcy matters.
This competitive bidding phase occurs in the wake of Yellow Corp. securing a more cost-effective bankruptcy loan to facilitate its liquidation process. Citadel Credit Master Fund and the prominent shareholder hedge fund MFN Partners LP have come forward with a combined offer of $142.5 million to support Yellow's liquidation endeavors.
In terms of industry rankings, Old Dominion Freight Line holds the No. 10 position on the Transport Topics Top 100 list of the largest for-hire carriers in North America. On the same list, Yellow and Estes claim the No. 13 and No. 14 spots, respectively. Among the realm of less-than-truckload carriers, the trio of Old Dominion, Yellow, and Estes hold impressive ranks of 2nd, 3rd, and 5th, reaffirming their significant presence within the sector.
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