Yellow Corporation files voluntary Chapter 11 petitions

Goodmans LLP is acting as Canadian counsel for Yellow Corporation and its subsidiaries in connection with their ongoing recognition proceedings under Part IV of the Companies’ Creditors Arrangement Act in respect of their Chapter 11 bankruptcy proceedings.

The Debtors form an approximately 100-year-old trucking and logistics company, which boasted one of the largest less-than-truckload networks in North America that enabled Yellow to provide customers with regional, national, and international shipping services of transportation logistics and LTL services. Entering 2023, Yellow was the largest unionized LTL carrier in the United States, in addition to being the third largest LTL freight carrier and the fifth largest transportation company in North America. Yellow Corporation traded on the NASDAQ. 

Throughout 2023, Yellow had been facing a severe liquidity crisis over an extended period, resulting in large part due to the International Brotherhood of Teamsters blocking Yellow’s multi-phase strategic initiative, that was intended to modernize Yellow’s business and upgrade the efficiency of its operations.  The union refused the company’s proposals in connection with implementing the One Yellow initiative, which significantly impaired the company’s liquidity and ability to refinance its approximately US$1.2 billion of debt.  

Goodmans has been actively involved in working with the company and its U.S. advisors to ensure the efficient coordination of these cross-border proceedings and the successful implementation of the company’s wind-down and sale efforts with regards to the Canadian Debtors and their assets and property in Canada.