Yellow Corporation Jumps 6.41% in premarket trading after reports Apollo Global Management was nearing a deal to provide the transport company with a bankruptcy loan.
Yellow Corp. soared 121.6% on Tuesday.
Creditors led by Apollo Global could provide Yellow with fresh cash, Bloomberg reported, citing people familiar.
Apollo is finalizing a deal to lead a debtor-in-possession, or DIP, financing for the imperiled trucking company, Bloomberg reported. Apollo owns most of one of Yellow’s term loans.
Yellow has been teetering on the brink of bankruptcy for weeks, unable to handle its debt load.
On July 30, YELL sent out notices to customers and employees saying it has ceased all operations, and the Teamsters union said the company notified the union it intends to file for bankruptcy.
Customers said at the time disruptions should be limited after many shifted their cargoes to rivals in recent weeks, hastening Yellow's (YELL) demise.
The company has more than $1 billion of debt maturing soon and has been unable to refinance. YELL took a Covid-era rescue loan from the government totaling $700M in 2020.
