INDUSTRY INSIDER | April 18, 2024

Want to Buy a Yellow Truck? Literally Thousands to Choose From

Original Source: FocusOn Mining, Aggregates & Construction

Selling off the assets of bankrupt less-than-truckload carrier Yellow Corp. is set to take another step when the first rolling stock will be up for auction soon.

Ritchie Bros. Auctioneers said it will kick off the auction at 8 a.m. EST on March 5, offering buyers their pick of trucks and trailers operated by a company ranked No. 13 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 3 on the LTL sector list. The timed online auction, one of a number court-approved auctions Ritchie Bros. is set to hold, will put 3,171 items on the sales block once operated in the eastern part of the United States by Yellow.

Of the items up for sale, some 715 are truck tractors, of which 443 are single-axle cabs, 248 are tandem-axle cabs and 24 terminal tractors. While Yellow operated a fleet that was older than the industry average, a total of 101 model year 2022 and model year 2023 Volvo VNR 4×2 day cabs are on offer March 5, as well as 92 model year 2022 Peterbilt 579 4×2 and 6×2 day cabs.

Further Auctions and Interest in Terminals
The next Yellow rolling stock auction is scheduled for March 26 — the Yellow Corp. Central Regional Event. It involves 2,246 items, with 1,682 trailers and 366 tractors. Of the tractors, 213 are single-axle cabs, 136 are tandem-axle cabs and 17 are terminal trucks. Further auctions are scheduled for April 16 and May 7. Beyond the rolling stock.

Yellow still has 46 owned and 108 leasehold terminals on the auction block. In a monthly omnibus hearing, Yellow lawyer Allyson Smith said Feb. 14 there was interest in 30-40 more of the owned terminals and around 75 leased terminals. At that point, Yellow had closed on 17 transactions involving the sale of 118 owned and 25 leasehold terminals with a value of $1.9 billion.

Settling Claims and Looking Ahead
Outside the auctioning off of assets, Yellow’s administrators are in the midst of settling unsecured claims, including pension withdrawal liability claims, Worker Adjustment and Retraining Notification Act claims and personal injury claims. Yellow’s administrators dispute the size of the withdrawal liability claims from Central States Pension Fund and other multiemployer pension funds. The administrators on Feb. 10 laid out a timeline for their dispute with the pension funds in court filings. It culminates, if the dispute reaches the bench, in a trial Aug. 5-9 and Aug. 12-16. Before any of that gets started, a decision on whether the venue for the dispute is the bankruptcy court or arbitration will be made March 6. The next omnibus hearings are scheduled for March 6 and April 11, according to the bankruptcy court.