The bankrupt estate still has about 100 service centers remaining for liquidation.
On Wednesday, a federal bankruptcy judge in Delaware approved two separate purchase agreements totaling $192.5 million for Yellow Corp.’s real estate. Estes, a less-than-truckload carrier based in Richmond, Virginia, is acquiring 11 terminals, four of which are leased, from the defunct Yellow (OTC: YELLQ) for $142.5 million. Notable properties in this transaction include a 216-door terminal in Cincinnati, a 198-door facility near Chattanooga, Tennessee, and a 167-door terminal in Tracy, California.
In addition, Wilmington, Ohio-based R+L Carriers is purchasing a single location – a 304-door terminal in Maybrook, New York – for $50 million. The Maybrook facility was sold for over $164,000 per door, while the owned properties in the sale were likely acquired for just under $150,000 per door.
A proposed order detailing the purchase agreements was submitted to the court last week, with sales anticipated to close in January. Since the liquidation of Yellow began, Estes has acquired around 50 owned and leased locations for over $426 million, while R+L Carriers has secured 12 properties for $270.5 million.
Allyson Smith, counsel for Yellow from Kirkland & Ellis, noted on Wednesday that there are still “a couple dozen” leased and owned properties left to sell. However, prior court filings suggest that the actual number is likely closer to 100 service centers, excluding the 12 locations with approved purchase agreements. The remaining portfolio includes several significant properties: 426 doors in Chicago, 325 doors in Bloomington, California, 198 doors in Memphis, Tennessee, 193 doors in Kansas City, Missouri (near Yellow’s former headquarters), 178 doors in Portland, Oregon, 165 doors in Fontana, California, and 140 doors in Phoenix.
The deadline for bids on the remaining properties is set for January 6, with an auction scheduled for January 13 to 15. Smith indicated that Yellow is actively negotiating with interested buyers and that additional one-off sales similar to the recently approved agreements could occur.
