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Yellow Corp, a key player in the logistics and transportation industry, recently announced a significant move in its restructuring efforts. In a follow-up round of bidding, the company has agreed to sell the leases of 23 more properties for a staggering $82.9 million, as revealed in their recent bankruptcy court filings. This strategic decision marks a pivotal moment in the company’s history and reshapes the landscape of the logistics sector.
In this latest round, industry giants Estes Express Lines and FedEx Freight emerged as the top spenders. Estes made a substantial investment of $35.3 million, while FedEx Freight placed a bid of $22.5 million. Notably, Saia Inc. is set to acquire the most properties, nearly a dozen, showcasing its strategic expansion plans.
Previously, Yellow Corp successfully sold 128 properties and two leases in an initial bidding phase that started in late November. The company still holds over 100 owned and leased properties, which are yet to be auctioned. This ongoing process indicates a significant reshuffling in the ownership of logistic assets across the country.
The acquired leases are set to significantly expand the networks of Less-Than-Truckload (LTL) providers, especially in the northwestern United States and Midwest. For Saia, the deal includes terminals across Montana, Wyoming, the Dakotas, Utah, Nevada, and California. Meanwhile, FedEx Freight’s notable investment in a terminal in Sparks, Nevada, marks its sole acquisition in the auction so far.
With these latest bids, the total amount offered for Yellow Corp’s properties has reached an impressive $1.96 billion, more than sufficient to repay the company’s debt of over $1 billion. This strategic move not only aids Yellow Corp in its restructuring efforts but also signifies a reshaping of the logistics industry’s infrastructure and competitive landscape.
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