The collapse of trucking giant Yellow Corp. casts doubt on whether the U.S. government will be able to fully recoup a controversial $700 million loan for an enterprise that was already in financial trouble before the Treasury threw it a COVID lifeline, Bloomberg News reported. The Nashville-based company may be forced to file for bankruptcy soon, after having told workers on Monday that it was shutting down. The decision punctuates the company’s struggle to refinance more than $1 billion of debt maturing in 2024 — almost half of which is held by the government. Now, it’s unclear how much the Treasury Department, which issued the loan in 2020 under the Trump administration, can expect to get back. The government and its agent for the loan, Bank of New York Mellon, may have to fight other creditors in court for whatever assets Yellow has left. Among the other creditors: private equity titan Apollo Global Management Inc., which in 2019 was the lead lender on a $600 million term loan for the company, known at the time as YRC Worldwide Inc.
