Economy Yellow Freight Trucking Company Goes Bankrupt After Receiving 700 Million in 2020

[Smokes]

I am sorry if there is a thread on this, search ain’t working.


But someone need to go to jail for this. Yellow freight got 700 million dollars in bale out money in 2020 and it’s gone in 3yrs. The owners file bankruptcy and now none of it drivers have a job or a pension. There has to be some type of fraud going on.

https://amp.cnn.com/cnn/2023/08/07/business/yellow-bankruptcy-filing/index.html

And this is More Bullshit.

the owners are getting ready to sell of all its assets(trucks,buildings,etc) and it’s valued at 2.1 Billion. So after the sell off everything for 2 Billion, they pay back the Govt 750 million it took in bale out money and then the owners aways with the rest and debt free while all it 30k workers get Nothing. No severance package or pension or nothing.

 

[Poon Goon]

Bale out

 

[Smokes]

When you get a bail out loan, does it not come with oversight from the Govt or do they just giving u money and let you keep running your company into the ground?

 

[Smokes]

Bale out

dammint I knew it looked funny.

 

[RoastBeast]

Bail out the rich and leave the working class holding the bag.

It's the American way.

Our government does not work for us. Why do we keep voting for the same people who don't give a damn about any of us?

 

[LeonardoBjj]

- It's ridiculous if they get out like this!

 

[no fat chicks]

I thought the owners took all the risk because they're staking the capital?

 

[ColemanwastheGOAT]

Why do we keep voting for the same people who don't give a damn about any of us?

To own the chuds.

 

[ColemanwastheGOAT]

I thought the owners took all the risk because they're staking the capital?

Precisely. If they sell all their shit and pay back the loan, what's the issue?

You're allowed to shut your business down if you want.

 

[Smokes]

Precisely. If they sell all their shit and pay back the loan, what's the issue?

You're allowed to shut your business down if you want.

One issue I have is that they also mishandle 70millions dollars of the employee’s pension fund and the owners won’t pay anything to them. Who is responsible for that, the owner and now they walk away free. Might be legal and all that but that’s wrong. 30k people should be able to get something other than unemployment. Some of those guys are too old to start over.

 

[JudoThrowFiasco]

When you get a bail out loan, does it not come with oversight from the Govt or do they just giving u money and let you keep running your company into the ground?

Usually comes with ownership stake and or interest.

 

[JudoThrowFiasco]

On the plus there is such a shortage of truckers that most of those people will be able to find other jobs in the industry. Many without having to move

 

[Fluffernutter]

When you get a bail out loan, does it not come with oversight from the Govt or do they just giving u money and let you keep running your company into the ground?

https://www.opensecrets.org/orgs/summary?id=D000021681

https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2021&id=D000021681

 

[Day Drinking]

Bail out the rich and leave the working class holding the bag.

It's the American way.

Our government does not work for us. Why do we keep voting for the same people who don't give a damn about any of us?

Voting doesn't change how the government works.

 

[ColemanwastheGOAT]

One issue I have is that they also mishandle 70millions dollars of the employee’s pension fund and the owners won’t pay anything to them. Who is responsible for that, the owner and now they walk away free. Might be legal and all that but that’s wrong. 30k people should be able to get something other than unemployment. Some of those guys are too old to start over.

Well that actually sounds illegal. I would expect a lawsuit is headed their way over that.

And to be fair, the OP doesn't mention the pension fund. The article just says they missed one month of the pension payments. $70M a month in pension payments will drive just about any business under.

 

[emefer]

The workers that are getting screwed can thank Reagan for letting companies count pension funds as an asset.

 

[emefer]

Socialism for the rich
Bootstraps for the rest

 

[SakurabasEar]

Yes, the system can be a sham. But id expect someone will try to investigate this one

 

[Smokes]

Well that actually sounds illegal. I would expect a lawsuit is headed their way over that.

And to be fair, the OP doesn't mention the pension fund. The article just says they missed one month of the pension payments. $70M a month in pension payments will drive just about any business under.

Here is something I don’t like about it too. I am a Proud UPS Teamster but I think the union sold out the members of Yellow. Days before Yellow filed for bankruptcy, the union was talking about suing them and trying to everything it could to keep the Yellow operating until it found new investors. Now, at the same time, the teamster are in negotiations with UPS, it’s biggest contract, and a day after it announced their deal with UPS deal, Yellow was allowed to file for bankruptcy and the teamsters backed off the campaign to keep Yellow open. So to me it seem like teamster told UPS give us more money and will back off another competitor and y’all will pick that volume up and make it back 10x fold.


But even if I am way off, you are right 50-70 million a month is crazy and could be a problem that the union brings to the table. I see how the union bring a heavy toll on companies and hurts some.

 

[Sinister]

Here is something I don’t like about it too. I am a Proud UPS Teamster but I think the union sold out the members of Yellow. Days before Yellow filed for bankruptcy, the union was talking about suing them and trying to everything it could to keep the Yellow operating until it found new investors. Now, at the same time, the teamster are in negotiations with UPS, it’s biggest contract, and a day after it announced their deal with UPS deal, Yellow was allowed to file for bankruptcy and the teamsters backed off the campaign to keep Yellow open. So to me it seem like teamster told UPS give us more money and will back off another competitor and y’all will pick that volume up and make it back 10x fold.


But even if I am way off, you are right 50-70 million a month is crazy and could be a problem that the union brings to the table. I see how the union bring a heavy toll on companies and hurts some.

Hopefully Company Man looks into this. That guy does pretty good breakdowns of massive corporate failures and usually it's just good old fashioned stupidity. Companies expanding too fast, not investing in operations to assure quality, taking on debts to make bad decisions the owners are obsessed with for whatever reason...perpetual growth fallacy.

Here in Vegas during the shutdown period the people crying the hardest to the Government for money were the giant Casinos. It was obscene how fast they were declaring disaster and they rake in billions per year, and dont get me started on how much of scams they are. Yet they laid off thousands of workers, didnt pay people, and a few of them went into full disarray and shut down.