Wow Has It Been A Minute!

“The debtor is slave to the lender”…….period.

It’s always annoyed me how many supposed “business leaders” , “educated economists” and “gurus” seem to dismiss this fact or act all surprised when things blow up (financially speaking) in their faces. The sad part is that innocent people often get wrecked by careless decision making. Yellow/YRC has had it coming for years (not the drivers).

Back when I was in CDL school, we had a YRC rep come talk to us. You know what pushed all of us away from even considering applying with them? They didn’t provide enough lunch to feed all 30 or so of us and the rep had to call his boss asking for more $$ to get more pizza 🍕.

I smelled their crock a mile away, glad I stayed away.

Rhino, I’m glad you got on your feet.

Yellow should be a cautionary tale for all of us about living and operating within our means.

I thought a deal had been cut with Yellow? To prevent this? I must be wrong then, thought I read that somewhere.

It's an interesting situation and I'm following along learning a lot.

Apollo is the lender Yellow owes most. They have agreed to fund the shutdown. That's the lending I was reading up on. It wasn't another bail out, it was them moving to the front of the line.

That will make them the "debtor in possession", putting them at the very top of the list to get paid after the liquidation is compete.

You also have the stock skyrocketing because MFN is buying up a bunch of it. Last I saw they owned 48% of Yellow stock.

Buying stock makes MFN an owner of the company. MFN must believe that there are more assets than liabilities and Yellow will have a lot of cash after paying all the debt.

Then there's Uncle Sam. The 700 million from the government is secured by stock not assests. That means when/if Yellow files for bankruptcy the government gets nothing.

If the liquidation brings in more money than the debts owed, Yellow will not qualify for bankruptcy protection. Apollo and MFN are in the money business. They have no interest in running a trucking company or using the laid off work force.

Moe, THANK YOU! The borrower being slave to the lender is exactly what has been driving me to reposition myself. I'm a company driver and I used to get stressed if I didn't get 2,600+ miles/week. Now, I've got myself where I can get by (if I absolutely have to) on less than 1,500 miles/week.

With the economic downturn (regardless of what Joe Biteme says), I'm really glad I've been able to reduce my debt so much. While the relationship with Dispatch is important, I find it easier to have a good relationship when I don't HAVE TO make as many miles. While dispatch is freaking out trying to find loads AND please drivers, I can be more flexible; makes their job easier and mine a little less stressful.