- Insolvency Insider Canada
- Posts
- YRC Freight Canada Company et al., Interim Stay Order
YRC Freight Canada Company et al., Interim Stay Order
YRC Freight Canada Company et al., a 100 year-old trucking and logistics company operating under the Yellow brand, obtained an order granting an interim stay in Canada after filing a Chapter 11 petition in the US, triggering an automatic stay there. The companies obtained their First Day Orders from the US Court on October 9 and intend to seek recognition of the First Day Orders in Canada. The companies have faced a severe liquidity crisis in recent months resulting in large part due to the resistance of the International Brotherhood of Teamsters to the implementation of the company’s strategic initiative, referred to as “One Yellow”, that was intended to modernize Yellow’s business and upgrade the efficiency of its operations so that it could compete successfully against non-unionized less-than-truckload carriers. This significantly impaired the companies’ liquidity and efforts to refinance $1.2 billion in debt. A&M is the proposed Information Officer, represented by Cassels. Goodmans is counsel for the company and Osler is counsel for Apollo Capital Management LP.
By: Dina Milivojevic