Estes Express Lines raised its offer for bankrupt Yellow Corp.’s shuttered LTL terminals to $1.525 billion this week, setting a new floor for their valuation ahead of a possible auction next month, according to a court filing Wednesday.
The bid allowed the privately owned, Richmond-based carrier to reclaim its position as stalking horse bidder — at least for now — for the nearly 170 properties, surpassing rival Old Dominion Freight Line’s $1.5 billion offer last month.
With a bidding war over the terminals between Estes and Old Dominion off and running, the properties’ values could continue to increase. Yellow will continue to consider higher bids, and the proceeds of asset sales will be used to repay the company’s debtors in a court-supervised process.
Old Dominion’s August bid replaced Estes’ initial bid of $1.3 billion.
Estes’ latest offer includes more favorable terms for Yellow, including lower fees in bid protection, according to the filing.
Additional bids could come before or during an Oct. 18 auction for the properties, which shuttered as Yellow ceased operations and filed for bankruptcy this summer.
