And the Plot Thickens........Yellow

That sounds like an acquisition attempt to me. It just sounds like they're doing it by making a loan rather than the traditional method.

 

Yes and no.

If they were to acquire the business in the traditional way they would take on the responsibilities of paying out other loans, paying the past due bills including pension, and potentially be involved in the ongoing court cases that will arise.

I doubt Estes wants anything to do with Yellow as a business, just the assets.

My bet is Estes would be making the loan to eliminate a couple of other investors/creditors. Then take some assets as a fair value exchange for the loan. And give them a seat at the table and negotiating power to purchase other assets that would then pay off other creditors/investors. Once assets of interest to them are negotiated they walk away cause their loan has been repaid. Just needs to be approved by the bankruptcy judge.

That would leave a few assets to be sold at a bankruptcy auction to pay off any remaining creditors. Estes would walk with no responsibility for the debris left behind.