In the aftermath of Yellow Corporation filing for bankruptcy, The Kansas City Business Journal recently interviewed Sader Law Firm Managing Member Neil Sader, who gave his perspective on the key elements to consider in the upcoming proceedings. In the article, titled “4 key issues in Yellow bankruptcy that veteran attorney Sader is tracking,” Sader provides insight into the ripple effect that Yellow Corp. closing its doors will create in the coming months.
Yellow Corporation closed its doors in early August with 100,000 creditors owed, $2.15 billion in assets and $2.59 billion in debts. Sader spoke to four main categories related to Yellow Corp.’s bankruptcy: cash collateral, the “stalking horse bid,” the court’s actions, and other ongoing legal action.
“The court’s perspective is to try and maximize the estate and do it in a fair and equitable way,” Sader said in part. “The court’s first priority will be to ensure that the creditors are taken care of as well as possible. But the court does have an interest in making sure that the debtor takes care of its employees according to the law. Whether that’s properly severing them, properly paying benefits or properly paying taxes, the court is going to be on top of that, making sure those types of debts are covered, even though that may have no importance to a secured creditor.”
The full article can be found at this link. Please note, a subscription may be required. If you have questions about your financial situation, or are considering filing for bankruptcy, contact Sader Law Firm at (816) 561-1818 for a free phone consultation.