Jack Cooper Making $2 Billion Bid for Bankrupt Yellow

Jack Cooper Making $2 Billion Bid for Bankrupt Yellow

(Jack Cooper Holdings Corp.)

[Stay on top of transportation news: Get TTNews in your inbox.]

Jack Cooper Transport is reportedly making an almost $2 billion bid to grab up the belongings of Yellow, the trucking agency that collapsed in late July and filed for chapter.

The proposed buy by the Kennesaw, Ga.-based auto transport and logistics firm, which is getting bipartisan help on Capitol Hill in addition to behind-the-scenes lobbying by the Teamsters, might salvage most of the 30,000 principally union jobs misplaced when Yellow shut down amid accusations of economic mismanagement.

The failed firm had operated nationally, accounting for between 7% and 10% of the market. In Georgia, about 850 Yellow drivers had labored for Yellow.

Jack Cooper Holdings ranks No. 75 on the Transport Matters Prime 100 listing of the most important for-hire carriers in North America. Yellow ranks No. 13.

Yellow Corp. vehicles parked at a facility in Hayward, Calif., on Aug. 2. (David Paul Morris/Bloomberg Information)

Jack Cooper Transport, a 95-year-old firm, gives automobile hauling and plenty of different logistics providers. Its largest prospects are Common Motors, Ford and Stellantis. The corporate is owned by the Riggs household, which acquired it from Jack Cooper’s grandson, Thom Cooper Jr.

Sarah Riggs Amico is government chair of the corporate’s board. Her father, T. Michael Riggs, is chief government of the corporate.

Officers of each the Teamsters and Jack Cooper declined requests for remark.

However Reuters has reported that Amico and different firm officers have requested Biden administration officers to help the acquisition. Important to that help is the dealing with of debt that Jack Cooper would inherit from Yellow. The deal is valued at roughly $2 billion, Reuters reported.

Jack Cooper Transport, a 95-year-old firm, gives automobile hauling and plenty of different logistics providers. (Jack Cooper Holdings Corp.)

The rapid explanation for Yellow’s breakdown was seen as its incapacity to refinance $1.3 billion in debt, which included a $700 million pandemic-assistance mortgage it obtained from the federal authorities in 2020. On the time, Sean O’Brien, Teamsters president, harshly criticized Yellow administration for failing regardless of that massive mortgage along with concessions from union staff. He known as it “a tragic day for staff and the American freight trade.”

However now, that authorities mortgage is a pivotal consider Jack Cooper’s bid.

The pandemic-spurred mortgage is due subsequent September. To make the acquisition of the moribund firm extra engaging, Jack Cooper is reportedly asking that the U.S. Division of the Treasury lengthen the deadline for repaying that mortgage till 2026.

Two letters from U.S. senators have been despatched to Treasury Secretary Janet Yellen, arguing {that a} two-year extension is a great transfer each for taxpayers and the general economic system.

“If this mortgage had been to undergo chapter, $700 million value of taxpayer {dollars} can be primarily wasted,” wrote Sen. Roger Marshall (R-Kan.). The acquisition “would supply an ample alternative to have this mortgage repaid and the taxpayers made entire once more.”

One other letter signed by Sen. Sherrod Brown (D-Ohio) additionally endorsed the deal as a option to repay Yellow’s collectors and taxpayers whereas preserving good-paying union jobs.

Yellow had revenues of about $5 billion and made roughly 50,000 deliveries a day.

So Yellow’s failure has added to prices of shipments to corporations and customers, Brown wrote, and its revival would reverse that, whereas additionally smoothing provide chains.

“On the finish of the day, there are millions of American households that need to see the corporate’s doorways reopen,” he wrote. “Treasury must be clear-eyed that union households and the power of our economic system depend on jobs like those that had been misplaced.”

That letter was co-signed by six different senators, 5 Democrats and Bernie Sanders (I-Vt.).

Similar Posts

Leave a Reply

Your email address will not be published.