Yellow Corporation Files Voluntary Chapter 11 Petitions

International Brotherhood of Teamsters Drives Nearly 100-Year-Old Company Out of Business

30,000 American Jobs Lost

NASHVILLE, Tenn., Aug. 06, 2023 (GLOBE NEWSWIRE) -- Yellow Corporation (NASDAQ: YELL) and certain of its direct and indirect subsidiaries (collectively, the “Company” or “Yellow”) filed voluntary petitions for relief under Chapter 11 (the “Chapter 11 Cases”) of the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) for the Company’s planned operational wind-down.

To facilitate this process, the Company expects to enter into an agreement, setting forth the terms and conditions of a debtor-in-possession financing facility (the “DIP Facility”). Upon approval by the Bankruptcy Court and the satisfaction of the conditions set forth in the agreement, the DIP Facility will provide the Company with needed liquidity which will be used to support the businesses throughout the marketing and sale process, including payment of certain prepetition wages.

The Company and its subsidiaries continue to manage their businesses and properties as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The Company filed a number of motions with the Bankruptcy Court designed to facilitate the Company’s orderly wind-down of the businesses. Certain of these motions seek authority from the Bankruptcy Court for the Company to make payments upon, or otherwise honor, certain obligations that arose prior to the filed voluntary petitions, including obligations related to employee wages, salaries and benefits, taxes, and certain vendors and other providers of goods and services essential to the Company’s businesses. The Company expects that the Bankruptcy Court will approve the relief sought in these motions on an interim basis.

“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” said Yellow’s Chief Executive Officer, Darren Hawkins. “Today, it is not common for someone to work at one company for 20, 30, or even 40 years, yet many at Yellow did. For generations, Yellow provided hundreds of thousands of Americans with solid, good-paying jobs and fulfilling careers.”