Yellow (OTCMKTS:YELLQ) stock has been suspended from trading on the Nasdaq under the YELL stock ticker. Indeed, as of today, the trucking company is trading via over-the-counter “pink sheets.”
What’s up with Yellow lately?
Well after months of speculation, the time of reckoning has finally come for Yellow. The firm filed for Chapter 11 bankruptcy last week, fueling speculation that the 100 year-old business would delist from the Nasdaq. This bankruptcy announcement also came on the heels of the company’s halted operations, which effectively put some 30,000 employees out of work.
Despite the slew of pessimistic news, though, YELL stock itself has gotten somewhat “memey.” Indeed, now trading under the YELLQ ticker, Yellow actually is up by more than 4% today. This has pushed the stock to around $1.15 per share — relatively strong for a bankrupted, delisted shell of a company.
YELL Stock Climbs Amidst Bankruptcy Liquidation
Despite Yellow’s superficial near-term gains, YELL stock shares closed in the red by about 30% on Tuesday following news that Apollo Global Management is selling off a $500 million term loan previously offered to Yellow. This came alongside plans for Apollo to drop the financing extension given to the company.
According to a Yellow attorney last Wednesday, the company is opting not to seek “court approval to borrow $142.5 million from Apollo as planned.” Instead, Yellow stated it would attempt to explore other loan offers in the time until its debt payments are due.
If you recall, Yellow has $1.3 billion in debt payments due next year, divided between a $567.4 million term loan due in June and a $729.4 million U.S. Treasury loan due next September.
With that said, the company isn’t without a slew of bankruptcy loan offers. In fact, last week the company made a proposal in court that would offer it millions in fresh cash from other private financiers. Yell has stated that it may be possible for the company to make a comeback following the sale of its assets in bankruptcy.
For investors, however, the ship has largely sailed. The stock’s recent gains have been little more than an exercise in cathartic money-burning toward a company hurdling into irrelevancy.
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On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
