Trucker Yellow’s Managers Receive Millions in Payment Prior to Bankruptcy

Trucker Yellow’s Managers Receive Millions in Payment Prior to Bankruptcy


(Bloomberg) — Just weeks before​ closing its doors and dismissing thousands of employees, Yellow Corp. doled out millions of dollars in bonuses to executives so​ they wouldn’t⁤ leave the trucking firm during its chaotic ⁤unraveling,⁣ court papers ⁤show.

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Yellow paid bonuses totaling about $4.6 million to eight ⁣current and two former executives in the weeks before the company went⁣ bankrupt with plans to liquidate, according to corporate disclosures in ‌Delaware ‌bankruptcy court. The figure is higher than it would have been had Yellow managed to avoid a sudden bankruptcy filing, according to ⁢a person⁤ familiar with the‌ matter.

Of the bonuses⁢ disbursed,‌ nearly $2‌ million paid on ⁤July⁢ 14⁢ were approved⁢ by Yellow’s board in June — when the company was in trouble, but before ⁤it was considering ​filing for bankruptcy, according to the person. Yellow’s public feud with a union representing ⁢much ⁤of its workforce escalated ⁢days later⁤ when a strike notice prompted the…

2023-09-14 16:32:43
Source from finance.yahoo.com
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