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Bankrupt trucker Yellow repays $700 million Covid loan, Teamsters blast 'failed executives'

·1 min

The bankrupt trucking company Yellow has fully repaid a controversial $700 million Covid loan to the U.S. Treasury Department, along with more than $151 million in interest. The repayment follows the approval of Yellow’s request to sell most of its shipping centers and real estate for nearly $1.9 billion. However, unsecured creditors, including employee pension funds, are seeking billions of dollars in payouts. The Teamsters labor union, which represented Yellow workers, criticized the repayment, stating that the company had received wage and pension concessions while executives awarded themselves millions in bonuses. The loan was granted under the CARES Act despite objections from the Defense Department. Yellow’s management blamed the liquidity crisis on the Teamsters union for refusing to defer benefit payments.