YELLOW, the third-largest US less-than-truckload (LTL) carrier, is escalating its dispute with the International Brotherhood of Teamsters by taking the matter to court, reports New York's Journal of Commerce.
The company is seeking US$137.3 million in damages and accusing the union and its leaders of intentionally aiming to cause Yellow's financial downfall.
Recently, yellow filed a complaint in the US District Court for the District of Kansas, alleging that the union and certain affiliates breached their contract with the company by unjustifiably obstructing its corporate restructuring plans.
Yellow argues that a union agreement on its restructuring is necessary to move forward with the plan to refinance $1.3 billion in long-term debt.
The company faces the maturity of a $567.4 million term loan in June next year, and a $729.4 million US Treasury loan, which helped Yellow avoid bankruptcy in 2020, matures in September 2024.
Yellow CEO Darren Hawkins, stated in a released video message and company statement that they had no choice but to take legal action due to the actions of the union.
Yellow has requested assistance from the Biden administration in negotiating with the Teamsters.
The company also addressed Teamsters president Sean O'Brien, who called for Hawkins' resignation in a June 24 Twitter post featuring a gravestone with Yellow's logo.
Yellow condemned Mr O'Brien's role as a public agitator for the company's demise, emphasising that they are fighting to protect the livelihoods of their 30,000 employees and to safeguard the interests of shareholders, including American taxpayers.
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The company is seeking US$137.3 million in damages and accusing the union and its leaders of intentionally aiming to cause Yellow's financial downfall.
Recently, yellow filed a complaint in the US District Court for the District of Kansas, alleging that the union and certain affiliates breached their contract with the company by unjustifiably obstructing its corporate restructuring plans.
Yellow argues that a union agreement on its restructuring is necessary to move forward with the plan to refinance $1.3 billion in long-term debt.
The company faces the maturity of a $567.4 million term loan in June next year, and a $729.4 million US Treasury loan, which helped Yellow avoid bankruptcy in 2020, matures in September 2024.
Yellow CEO Darren Hawkins, stated in a released video message and company statement that they had no choice but to take legal action due to the actions of the union.
Yellow has requested assistance from the Biden administration in negotiating with the Teamsters.
The company also addressed Teamsters president Sean O'Brien, who called for Hawkins' resignation in a June 24 Twitter post featuring a gravestone with Yellow's logo.
Yellow condemned Mr O'Brien's role as a public agitator for the company's demise, emphasising that they are fighting to protect the livelihoods of their 30,000 employees and to safeguard the interests of shareholders, including American taxpayers.
SeaNews Turkey
