A federal judge approved Yellow’s $192.5 million sale of truck terminals as brokerage CBRE looks for buyers for the defunct trucking company’s remaining portfolio of about 100 terminals.
Yellow agreed to sell 11 terminals in nine states to Estes Express Lines and a single terminal in upstate New York to the parent company of R&L Carriers. Judge Craig Goldblatt of the U.S. Bankruptcy Court for the District of Delaware approved the sales agreements on Wednesday, and the sales are expected to close in January.
Yellow ceased operations last year and filed for Chapter 11 bankruptcy protection after nearly 100 years of business after being weighed down by elevated debt loads and financial disagreements with its unionized employees. Before the latest agreements with Estes and R&L, Yellow had sold about 160 terminals in the United States and Canada for about $1.97 billion.
Some of the properties that Estes is acquiring are a 27,156-square-foot truck terminal at 4320 Merchant Road in Fort Wayne, Indiana, and a 25,376-square-foot terminal at 4480 S. 90th St. in Omaha, Nebraska. The total purchase price for Estes’ portfolio is $142.5 million.
Ramar Land, parent of R&L, is paying $50 million for a 172,873-square-foot terminal at 1000 Homestead Ave. in Maybrook, New York.
Proceeds from the sale of properties to Estes and R&L will be used to pay off Yellow’s creditors. The largest creditors, according to court documents, include the International Brotherhood of Teamsters and BNSF Railway.
Yellow still has a remaining portfolio of about 100 terminals that it owns or leases. The company earlier this year hired CBRE to help sell the properties.
Some of the largest terminals that remain in Yellow’s portfolio include a 208,510-square-foot terminal in Bloomington, California; an 83,739-square-foot terminal in Phoenix; and a 27,300-square-foot terminal in Calgary.
For the record
David Lane at Burr & Temkin represented Estes. Mike Cook, Kyle Powell, Brian Askins, Tom Dyer, Chelsea Garvey, Matthew Zaun, Jaclyn Kocks and Kimberly Kinsley at CBRE are representing Yellow.