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Bankrupt trucker Yellow repays $700 million Covid loan, as unsecured creditors press for billions more

·1 min

The bankrupt trucking company Yellow announced that it has fully repaid a controversial $700 million COVID-19 loan to the U.S. Treasury Department, along with $151 million in interest. The repayment follows the approval of Yellow’s request to sell most of its shipping centers and real estate for $1.9 billion. Unsecured creditors, including employee pension funds, are seeking payouts from the remaining assets of the company. Yellow’s $1.3 billion debt, which included the COVID-19 loan, caused tensions between departments during the Trump administration. Yellow’s management and the Teamsters labor union continue to blame each other for the company’s challenges.