105 Year Old Trucking Firm, Yellow ($YELL), Files For Bankruptcy

105 year old trucking giant Yellow ($YELL) files for bankruptcy.

2 Min Read

 U.S. trucking company Yellow Corp’s ($YELL) shares drop 45% to $1.97/share premarket after filing for Chapter 11 bankruptcy protection

The bankruptcy filing estimates assets and liabilities of $1 bln to $10 bln, with more than 100,000 creditors

 This 100-year-old company rose as much as $5/share last Tuesday after Teamster said the company would be shutting down. The stock has jumped over 5x from near record low levels in the past five sessions; YTD, shares are up 42%

In 2020, during the peak of the COVID-19 pandemic, the U.S. government loaned Yellow $700 million and the Treasury Department acquired approximately a 30% equity stake in the company. Yellow is also  grappling with over $1 billion in debt due next year, which it has found challenging to refinance, consequently its cash reserves dropped from $235 million in December to approximately $100 million in June.

$YELL has 30,000 employees, the third-largest less-than-truckload carrier in the U.S.

“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” said CEO Darren Hawkins.


$YELL Daily Chart
$YELL Daily Chart

The daily chart shows what could be a level 2 buyer with a possible upside continuation toward $6.50 and a possible drop to support at $1.50 and $0.50. Currently the likelihood of a test of $1.50 is firmly on the cards.


Share this Article
Leave a comment

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.