Apollo leads deal for trucking firm Yellow's bankruptcy loan: Reports

WASHINGTON: Creditors led by Apollo Global Management Inc (APO.N) are nearing a deal to provide Yellow Corp (YELL.O) with fresh cash during a coming bankruptcy, Bloomberg News reported, citing people familiar with the matter.

Shares of Yellow were up 78% at $3.14 in afternoon trade.

The US asset manager, which owns most of one of Yellow's term loans, is well-positioned to provide backing and is finalizing a deal to lead a debtor-in-possession financing for the cash-strappedYellow declined to comment, while Apollo did not immediately respond to a Reuters request for comment.

Yellow, formerly called YRC Worldwide, is the third-biggest U.S. trucking company. It transports goods from multiple shippers in single trailers and focuses on "less-than-truckload" (LTL) shipping, the transportation of goods that don't require a full truckload.

It recently averted a threatened strike by 22,000 Teamsters-represented workers after paying more than $50 million it owed in benefits and pension accruals. trucking company, the report said.

Last week, the Teamsters union said Yellow had ceased operations and was filing for bankruptcy after failing to reorganize and refinance over a billion dollars in debt.

The trucking firm, which bought companies such as Roadway in 2003 and USF in 2005 to strengthen its LTL offerings, posted a total debt of $1.54 billion last year, according to Refinitiv data.

The company's struggles were compounded by a steep drop in e-commerce shipments from early pandemic highs and an industry-wide decline in freight volumes over the last year.

Yellow has $1.3 billion in debt payments due in 2024, including a $567.4 million term loan due in June and a $729.4 million U.S. Treasury loan due in September.