Sacramento facility headlines latest Yellow Corp. terminal sales

Bulk of bankrupt LTL carrier’s estate has been liquidated

Yellow's 35-door facility in West Sacramento, California sold for $3.4 million. (Photo: Jim Allen/FreightWaves)

A federal bankruptcy court in Delaware has approved purchase agreements for three of defunct Yellow Corp.’s terminals valued at $4 million. The former less-than-truckload carrier’s 35-door facility in West Sacramento, California sold for $3.4 million.

The other locations include a 10-door terminal in Monroe, Louisiana ($295,000) and a 17-door service center in LaGrange, Georgia ($275,000).

Crown Enterprises, the real estate arm of LTL carrier Central Transport, bought the Monroe location. Court filings show the group has acquired 12 locations for $93 million since the auctions began two years ago.

The other buyers appear to be real estate investment firms. All three of the locations were properties owned by Yellow.

Most of Yellow’s estate has been liquidated. Proceeds from $2.4 billion in real estate sales and $176 million in equipment sales have been used to repay $1.2 billion in secured debt, $213 million in bankruptcy financing, and various other claims and expenses. Estimates show the estate will have $600 million to $700 million to satisfy all remaining claims.

A final liquidation plan was approved by the court last month. Yellow has also entered into agreements that significantly reduce billions of dollars in withdrawal liability claims from 14 different multiemployer pension plans. However, the final bankruptcy plan and the pension settlement agreements have been challenged by Yellow’s largest shareholder, MFN Partners, which is seeking better terms.

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.