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Old Dominion Tops Estes’ Bid for Yellow Terminals
ODFL Submits $1.5 Billion Stalking Horse Offer
Old Dominion was founded in 1934, making it nearly as established as Yellow, which had been in business 99 years. (Old Dominion Freight Line)
Trucking company Old Dominion Freight Line Inc. has offered $1.5 billion to acquire Yellow Corp.’s 169 terminals out of bankruptcy, more than a previous offer from Estes Express Lines.
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The offer, disclosed in papers filed Aug. 18 in Delaware bankruptcy court, exceeds the $1.3 billion proposed stalking horse bid Estes announced Aug. 17. Old Dominion’s offer is also a stalking horse bid, which would set the floor price for Yellow’s terminals at a future Chapter 11 auction.
Lawyers for Yellow and Estes Express Lines didn’t immediately return messages seeking comment. Petition, a publication covering corporate distress and bankruptcy, reported the Old Dominion bid earlier.
The competing offers for Yellow’s terminals comes after the company secured a new, less expensive bankruptcy loan to fund its liquidation. Citadel Credit Master Fund and hedge fund MFN Partners LP, Yellow’s largest shareholder, offered to provide $142.5 million to fund Yellow’s liquidation.
Old Dominion Freight Line ranks No. 10 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. Yellow is No. 13 and Estes No. 14. Among less-than-truckload carriers, Old Dominion, Yellow and Estes rank 2-3-5.
