The nearly 100-year-old trucking company, Yellow Corp., filed for bankruptcy in Delaware on Sunday, August 6, 2023. Its outstanding debts are estimated to be $1.5 billion, including $730 million owed to the federal government for repayment of a pandemic-era loan. Yellow has estimated that it has approximately 100,000 creditors, leaving many businesses unaware of their potential claims. Any entities potentially impacted by the Yellow bankruptcy may consider reviewing their records to determine whether they have contractual or other relationships with Yellow and if so, acting quickly to protect their interests.
Both secured and unsecured creditors need competent counsel immediately, as corporate bankruptcy procedures move quickly. Orders appropriately named “First Day Orders” may be issued on the very first day a bankruptcy is filed, and may affect creditors rights, including maintenance of banking and financial arrangements, insurance coverage, utility payments, and employment of professionals. A summary of the Yellow Bankruptcy First Day Orders is provided here.
Additionally, large unsecured creditors must be fully informed of their positions as they may find themselves invited to serve on the Official Committee of Unsecured Creditors. Proofs of claim must be timely and comprehensively filed and the potential for other related litigations must be examined.
Chartwell Law understands the uncertainty that arises from this significant bankruptcy filing. Our creditors’ rights department has more than 30 years of bankruptcy experience, including creditors committee formation and meeting attendance, filing proofs of claim, asserting reclamation claims, motions to compel assumption or rejection of executory contracts or unexpired leases, cash collateral use and post-petition financing, plan formulation, voting and confirmation, the impact of the automatic stay on pending litigation, and the use of channeling injunctions.