Dive Brief:
- Yellow Corp. added a pair of corporate restructuring professionals to its board of directors last week at the behest of its largest shareholder, the bankrupt company said in a securities filing Monday.
- Mary Nell Browning and Thomas Knott were “specifically recommended” by MFN Partners, the shareholder, which seeks to maximize the value of the company as Yellow’s bankruptcy financier, the filing said.
- The pair will receive the $160,000 annual cash retainer paid to board members, as well as a quarterly cash compensation of $25,000, in lieu of equity. The company increased the size of the board to 11 members from nine and elected them on Sept. 5.
Dive Insight:
The maneuver by MFN Partners protects the private equity firm’s investment in the shuttered LTL carrier in a bankruptcy process that could feature horse-trading — if not a full-on bidding war.
In an Aug. 23 letter, MFN Partners requested board members with deep and relevant experience in structuring, implementing, and/or overseeing value-maximizing transactions in special situations, according to an earlier filing.
Browning and Knott “possess such experience,” Yellow said in Monday’s filing.
MFN Partners and Citadel took over as Yellow’s debtor-in-possession bankruptcy financiers from Apollo Global Management last month. The $142.5 million funding agreement listed a $1.5 billion stalking horse offer from Old Dominion Freight Line for Yellow’s terminals, surpassing an earlier offer from Estes Express Lines.
A court-supervised auction for the terminals, if required, is scheduled for Oct. 18.
