MP173 An interesting look at bankruptcy (Reading Railroad) is "Derailed" by Howard Lewis. It has been a few years since I read it, but Lewis was named as Trustee of the Reading and was in charge of settling the accounts. It took years and drained him of his career. He died in 2016 and if I recall was bitter of how his law firm treated him. He did settle for 3x what the Feds offered. Interesting read if one can find it. Not necessarily a "railfan" book, more historical content of the Reading bankruptcy. BTW...BNSF and others (including my employer) knew what they were dealing with (Yellow). The writing was on the wall, in yellow ink, for years. Ed
An interesting look at bankruptcy (Reading Railroad) is "Derailed" by Howard Lewis. It has been a few years since I read it, but Lewis was named as Trustee of the Reading and was in charge of settling the accounts. It took years and drained him of his career. He died in 2016 and if I recall was bitter of how his law firm treated him.
He did settle for 3x what the Feds offered.
Interesting read if one can find it.
Not necessarily a "railfan" book, more historical content of the Reading bankruptcy.
BTW...BNSF and others (including my employer) knew what they were dealing with (Yellow). The writing was on the wall, in yellow ink, for years.
Ed
I was checking the University of Indiana Press site because of some new releases. They have the book mentioned, "Derailed by the Reading" listed as available.
Jeff
If you all may recall. Yellow Corp and BNSF forged a deal for COFC traffic back in 2019. BNSF financed the purchase of 600 53' containers for Yellow Corp. I imagine Yellow fell behind on payments to be made back to BNSF.
BaltACD The ones that will get the bulk of any funds will be the bankruptcy lawyers. Creditors be damned.
The ones that will get the bulk of any funds will be the bankruptcy lawyers. Creditors be damned.
Yes, the lawyers always win.
Yellow's stock has taken a "dead cat bounce"...up 300% last week. Why?
Possible covering of short sales or possibly the asset sales will cover liabilities. They own 160 terminal properties and also a considerable number of late model tractors (typically day cabs) and trailers which was funded by the $700m loan from Feds in 2020 which was partially converted to equity.
My employer is owed considerable (for us) by Yellow.
Very interesting article in Saturday's WSJ - an interview with Sean O'Brian the Teamsters head. His attitude was some will suffer but Yellow had to go. Some numbered 22,000. He was very happy about the UPS settlement. It has been theorized that Teamsters invested in negotiating with UPS much more than Yellow, possibly true as they saw that yellow was a dying horse.
Never too old to have a happy childhood!
Likely pennies on the dollar. I had a customer go bankrupt..owed me about $10K...after all said and done I got $430.00.
BNSF was among those listed as "Unsecured Creditors" as Yellow Freight filed chapter 11 bankruptcy late Sunday afternoon. It looks like liquidation of Yellow's assets is next.
I wonder how much is owed to the BNSF and if they'll eventually get any of it.
This will be paywalled:
https://www.wsj.com/articles/trucker-yellow-files-for-bankruptcy-will-liquidate-aced4aa6?mod=hp_lead_pos1
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