Court Approves Sale of 128 Yellow-Owned Terminals

XPO Acquires Most Terminals So Far; Leased Terminal Auction to Restart Dec. 18
Yellow Corp. trucks
Yellow Corp. trucks at the YRC freight terminal in Kansas City, Mo. An auction for the leased properties beyond the two awarded to XPO is set to reconvene Dec. 18 and Dec. 19. (Charlie Riedel/Associated Press)

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A Delaware court approved the sale of 128 freight terminals owned by bankrupt less-than-truckload carrier Yellow Corp., according to an audio recording of a Dec. 12 hearing.

Judge Craig Goldblatt, presiding over the U.S. Bankruptcy Court for the District of Delaware hearing, approved the sale of the terminals plus two leased terminals for a combined $1.88 billion. No objections were raised during the hearing.

The sale of 128 of Yellow’s 169 owned terminals for a sum substantially larger than their appraised value was “obviously a tremendous outcome,” Goldblatt told the court.

Before Yellow’s administrators auctioned off the terminals, the value of all 169 had been appraised at $1.1 billion.

A further 46 owned properties are still up for sale as well as 147 of Yellow’s 149 leased properties.

Yellow’s rolling stock is also being auctioned off. Yellow owned around 12,700 tractors and 42,000 trailers at the end of the second quarter of 2023, according to company documents.

Ownership of the terminals under the sale approved by Goldblatt is set to be largely spread out among the carrier’s former LTL rivals.

XPO truck

XPO landed the highest number of Yellow properties, with 28. (XPO)

XPO Inc. agreed to pay $870 million for 26 owned terminals and two leased properties, emerging as the top bidder in the auction. Estes Express Lines landed the second-largest number of terminals in the auction, securing 24 owned terminals for a combined $248.72 million.

Greenwich, Conn.-based XPO ranks No. 5 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 4 on TT’s list of the largest LTL carriers in North America. Richmond, Va.-based Estes Express ranks No. 14 on the TT Top 100 for-hire carriers list and No. 5 on the LTL list. It had previously submitted a $1.525 billion stalking horse bid for all the terminals in September.

Who Got What

The four carriers who spent the most to acquire Yellow terminals, so far:

TT Rank Carrier Price Terminals
5 XPO $870M 28
14 Estes Express $248.72M 24
21 Saia $235.7M 17
7 Knight-Swift $51.3M 13

Two other bidders won multiple properties with combined bids topping $200 million — Saia Motor Freight Line and real estate investor Ramar Land Corp. Saia Inc. ranks No. 21 on the for-hire TT 100 and No. 9 on the LTL list.

Saia was the winning bidder for 17 facilities, agreeing to pay a combined $235.7 million.

Knight-Swift Transportation Holdings picked up 13 properties for $51.3 million. Knight-Swift ranks No. 7 on the for-hire TT 100. It acquired U.S. Xpress in March.

When Yellow sought court protection from its creditors in August, the company ranked No. 3 on the LTL list.

Allyson Smith


More than 650 parties were interested in the properties put up for sale, Yellow lawyer Allyson Smith said during the Dec. 12 hearing, adding that over 400 nondisclosure agreements were signed. There were 70 qualified bidders, of which 21 were successful, she added.

Yellow’s lawyers praised the sale and its approval by the court. “[It is a] great result for the estate and its stakeholders, and it was only possible due to the hard work and collaboration of our consultation parties, who worked around the clock with us to design and ensure a fair and competitive process. That process clearly worked,” Kirkland & Ellis’ Smith said.

Auctioning off the remaining owned terminals continues, although further details have yet to emerge.

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The auction began Nov. 28. The initial winning bids were announced Dec. 4.

An auction for the leased properties beyond the two awarded to XPO is set to reconvene Dec. 18 and Dec. 19. Auctions are fully virtual and anonymous, with bids submitted by email.

A court hearing on the leased properties sale is scheduled for Jan. 12 at 2 p.m. EST.

Meanwhile, a Jan. 22 hearing will be held during which claims against the estate will be heard.