Yellow Corp. is asking its bankruptcy court for approval to hire real estate brokerage CBRE to find buyers or tenants for 116 owned and leased truck terminals that it's been unable to offload so far through legal proceedings.

Yellow requested permission to work with CBRE in marketing its remaining portfolio of industrial properties in the United States and Canada to generate funds to pay creditors in its Chapter 11 bankruptcy case. A hearing is scheduled for Friday on Yellow’s request in federal court in Wilmington, Delaware.

The trucking company ceased operations in July 2023 and filed for bankruptcy the next month after financial pressures caused by mismanagement and disputes with the Teamsters union over benefits and compensation, according to court documents. Yellow has sold almost $2 billion of industrial and office properties during bankruptcy proceedings, CoStar News reported, but it hasn't found buyers for the remaining properties, 46 owned and 70 leased.

Yellow and its advisers, including its investment banker Ducera Partners have "run a remarkably successful sale process of their real property assets to date," Matthew Doheny, Yellow's chief restructuring officer, said in a declaration filed with the court in support of hiring CBRE as its real estate broker and adviser.

The trucking company selected CBRE after interviewing several other prospective real estate brokers, according to a court filing. CBRE’s marketing and brokerage efforts in local markets should broaden the purchaser pool for the properties by involving local parties in the property-by-property sale process, and ultimately maximizing transaction values, Doheny said.

Yellow needs approval after signing an agreement with CBRE on Aug. 16 for it to “provide critical transaction management and brokerage services … with respect to the proposed real estate dispositions, leasing and subleasing transactions,” Yellow’s legal counsel said in a document filed in the District of Delaware.

CBRE has already begun analyzing the properties but the court must approve the engagement before it can provide all its services, Yellow said. Those services include negotiating and approving “sale, leasing, subleasing, lease termination or lease renegotiation transactions.”

A CBRE spokesman declined to comment.

Yellow disclosed a detailed fee schedule for its contract with CBRE with the fees ranging between 4% and 5% for each property sold or leased, based on various terms and conditions. Specific estimated payment amounts were not disclosed.

The properties are located in multiple states and provinces in the U.S. and Canada, with many located in or near large cities, including New York, Los Angeles, Chicago, Phoenix, Cincinnati and Pittsburgh. They range in size from less than 5,000 square feet to a 226,566-square-foot facility at 2000 E. Lincoln Highway in Lynwood, Illinois.

Yellow also filed an order last week to amend Ducera Partners' compensation related to the case and potential real estate deals.

"I believe that CBRE’s exclusive brokerage services and Ducera’s exclusive investment banking and financial advisory services will build upon the already significant interest" in Yellow's remaining properties and maximize transaction values, Doheny said.

Kirkland & Ellis and Pachulski Stang Ziehl & Jones are serving as bankruptcy counsel to Yellow.