Trucking Giant Bankrupt After $700 Million Bailout

The New York Times reports:

Three years after receiving a $700 million pandemic-era lifeline from the federal government, the struggling freight trucking company Yellow is filing for bankruptcy.

After monthslong negotiations between Yellow’s management and the Teamsters union broke down, the company shut its operations late last month, and said on Sunday that it was seeking bankruptcy protection so it can wind down its business in an “orderly” way.

The company’s financial problems fueled concerns about the Trump administration’s decision to rescue the firm. It lost more than $100 million in 2019 and was being sued by the Justice Department over claims that it defrauded the federal government during a seven-year period. Last year it agreed to pay $6.85 million to settle the lawsuit.

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Breaking news: Yellow, a freight trucking company that received a $700 million pandemic-era lifeline from the U.S. government, has filed for bankruptcy. https://t.co/I2JpjbKF8W

— The New York Times (@nytimes) August 7, 2023