It was all over for Yellow anyway, but a District Court ruling today, dashed any semblance of false hope.
Yellow Loses Attempt to Stop Strike
Freightwaves reports Yellow Loses Attempt to Stop Strike
The U.S. District Court for the District of Kansas ruled Friday against less-than-truckload carrier Yellow Corp.’s request for an injunction, which would have kept its Teamsters employees from engaging in a work stoppage.
In her decision, Senior Judge Julie Robinson denied a motion for a temporary restraining order and injunction.
The decision allows the union to carry through with a planned strike, which could begin as soon as Monday. The final straw prompting the strike was Yellow’s missed benefits contribution payment to Central States Funds last week, which will leave workers without health care coverage on Sunday.
The two parties have been embroiled in a bitter dispute over operational changes for the last nine months. The carrier has maintained that without the changes it wouldn’t survive while the union took the stance that it had given enough in the past in the form of wages, benefits and work rules concessions.
In its filing seeking an injunction, Yellow said it would likely file for bankruptcy if the court didn’t rule in its favor.
“Absent injunctive relief, Plaintiffs will suffer immediate, substantial, and irreparable harm from Defendants’ unlawful work stoppage, including being forced into a Chapter 7 liquidation bankruptcy proceeding.”
All Over Anyway
It was all over injunction or not. Too many corporations pulled their freight.
Straight to Liquidation
A quick check shows the market cap is currently $55 million.
Shareholders will be totally wiped out and I doubt bondholders get much of anything.
Thought Experiment Answered
The stock is worth $0.00.
Yellow has $1 billion in debt maturing next year. Anyone have a chart of the Yellow bond debt yields and the implied breakup value?
Yellow goes tits up.US on the hook for $700M loan the “conservative” trump admin gave Yellow a few years ago. trump is subject matter expert on bankruptcy LOL
https://www.cnn.com/2023/07/31/business/yellow-corp-closing/index.html
I do not know it is true or not but I have hear that the people who have worked for the company have lost their pensions. I hope someone who here who knows if that is true and if so please give me a rundown as to why without the usual political slant.
The Treasury Department also holds nearly 30 percent of Yellow’s common stock and the loan is secured by the company’s assets. If Yellow declares bankruptcy and has to liquidate, the U.S. government will take over much of the company’s trucking fleet and real estate holdings.
Yellow’s loan, which was awarded as part of the $2.2 trillion pandemic relief legislation that Congress passed in 2020, had raised questions of cronyism from the beginning.
A report last year produced by Democratic staff of the House Select Subcommittee on the Coronavirus Crisis found that the money had been doled out over the objections of career officials at the Defense Department and suggested that senior Trump administration officials had intervened to ensure that Yellow received special treatment despite concerns about its eligibility to receive relief funds. In addition to deep ties to the Trump administration, the company, which for years faced legal and financial troubles, also had a strong lobbying presence in Washington.
Great news! Yellow has awful service. Most in the industry know this. Could we get a stick save by the current administration to buy union votes?
Yellow’s next step is to play hardball with the union. “Since the court won’t prevent a strike, we’ll have to file for bankruptcy. You are all going to lose your jobs.”
Mish wrote a post earlier this week that the Teamsters Union doesn’t care about lost Yellow jobs.
Pull up a chart of YELL back to 1970’s… note the all time high, March 2005, the reverse splits… Oct 2010, Dec 2011. A detailed study of this company would make a great story, the history, the leadership and their mistakes, who made the most money there, and who has lost the most money.
Yellow Corp Stock Ownership – Who owns Yellow?
https://www.wallstreetzen.com/stocks/us/nasdaq/yell/ownership
My understanding is that retail investors own very little of Yellow. Institutions will take a bath on one hand but scoop up the baby with the other hand. It is a perfect system of maleficence.
you are correct
Well over 90% of Teamsters donations go to Democrats. All I need to know. They will run any business into the dirt. Good news is their membership is starting to decline and will decline more after Yellow Truck folds. 20K or so Teamies poof. Go get another job losers.
What about the $700 million that the Treasury lent them? There was a 30% equity share given to the Federal government as part of that “deal”.
The US Treasury is purported to have a 29.6% stake in Yellow. Perhaps this is all a cosmic reckoning for Truckers to have financial stasis with Government workers.
Stocks worth about 1.06 at last look. This is what unions do to companies along with entitled high school diploma workers much like cops. I work at FedEx freight we haven’t seen any freight come our way and I mean nothing.
You know what is crazy? The fact that most Americans with two nickels to rub together have put their life savings into this Ponzi scheme called the “stock market”. Think about it. Everyone and their dog thinks it is actually RESPONSIBLE to have 5% or more taken from their pay every payday in order to “save” for retirement. That’s like saying l go to the casino and gamble as the safe responsible retirement program.
Get this!! Each one of these mo0r0nz thinks that it is not only possible, but normal and usual that everyone can, without thinking or work, put X into the Mammon Money Machine and then, right in time for retirement, they think they will all be able to pull out 2x, 3x, 4x or more of what they put in.
Nobody questions this. Nobody suggests that any stock market “investment” is simply gambling. Everyone puts their retirement savings into this black hole. I can tell you how it is going to end up, but I don’t want to scare everyone. But it begins with “Madoff”.
A stock certificate or bond is no different than the US Dollar. They’re all pieces of paper based on the value of the company or the US Government that stands behind it. As buyers and sellers, we trade the paper based on its underlying values. The stock market has risks but it’s not the same as casino bets. You can bury your money in the ground for safekeeping and let inflation reduce its value or the termites eat it. The stock market is not a gambling casino, black hole, or a Ponzi scheme. I’m not scared.
The 2009 stock market bull took off when FASB was warned by congress, to allow banks to lie about the value of their assets.
It is interesting that the value of a company can suddenly drop 20% in one day. Why would that be, except that the company was improperly valued at the higher price and people didn’t realize it, until hidden news came out?
The same people who gives their money to Wall Street is impoverishing Main Street. All those so-called “sophisticated” investors refused to invest in their own community, and they have the ignorance to whine about the results they helped create. The slave mind sure is a hoot.
been a fx and stock trader for many decades. never did i think it was anything but gambling. to your point, good gamblers need to keep alert to the chips and cards at all times. trusting your dough to the casino is height of idiocy. bless their hearts. if not for the dumbphuck middlebrows, life would be boring and not as easy. the competion in modern amerikan life is special needs olympics.
Personally, I have made many millions investing in stocks.
I would like to know what YOU invest in?
The stock market is a zero sum gain system. For every buyer there is a seller. Nothing has been created. You perhaps have a number in your brokerage account, but try and liquidate it at the same time as everyone else does and the story changes quickly. There is no actual wealth in the markets.
It’s not a zero sum game except for day traders who net to zero at the end of every day. They either win or lose vs the market makers. Most eventually lose to the MMs.
Otherwise, over time, the stock market tends to rise. That does not mean it will. Look at Japan. Someone who bought the peak and held is still underwater many decades later.
It’s a mistake to believe that’s impossible here.
Then there are dividend stocks, as long as dividend yields are firm, you will eventually get your money backs.
Yeah, everything is a risk. But it’s not zero sum, except as noted.
10% of the LTL market though – that’s pretty good. If i was a competing carrier I would be would definitely love to buy Yellow if for no other reason then to gobble up their accounts.
Try selling your gold when everyone else is at the same time.
Yeah, you tell us all what a sophisticated investor you are. It’s hilarious. Land, for what I use it for, and myself. Now go and buy yourself a friend. Look at you. Bragging about being a schmuck. If money is the sole measure of your wealth, you are a very poor thing.
health is all! worrying about money leads to a stroke!
You are right Captain. People’s 401k account balance is dictated by the last sales price of the equities in that portfolio. There is no way that the masses can cash in on their accounts all at once without their portfolios cratering. There is no there there when it comes to substance. Many retirees will be liquidating portions of their accounts at an increased rate because of demographics. Baby boomers will cash in as necessary.
It’s literally a bubble…. It’s valued as the volume it contains, which is empty, instead of the skin, which is the actual value.
People can only get their money out if there are new investors, so it’s also a Ponzi scheme .
The fact that it’s generally deemed acceptable has no bearing on these facts.
Have you looked at a chart of the S&P 500 with dividends reinvested over the last 100 years?
I mean, who knows what will happen going forward. But it has certainly been possible (easy, even), historically, to retire and retire very well by just plugging money into the market essentially at random.
It wouldn’t look so good if they didn’t remove the losers now and again.
No, it looks just fine. Dump your money in something boring as snot like VTSAX and, at least historically, you can sit back and earn 10% a year so long as you hold on for a decade or two.
Sure, it’s like a casino… if you’re the house.
Now if you think you’re smarter than the average bear and want to start picking stocks, that’s usually a great way to lose your shirt. No argument there.
Tell me more about the future ….
If the future sucks, so be it. History favors the optimistic. Just do the opposite of Mish and you should be good.
It’s puzzling that someone who is against the stock market would be commenting on a blog dedicated to analysis of the economy and the stock market. Captain, are you here to try to convert the heathen? Are you here to be the tip of the spear in the world revolution against capitalism? Or perhaps you are here as many of us who are a bit bored and have enough free time time to comment to people we don’t know? Please give us an honest answer.