In the wake of Yellow Corp.’s bankruptcy announcement, Rep. French Hill of Arkansas has again voiced his concerns about a $700 million federal loan that the trucking company received in 2020. On Sunday, the beleaguered Nashville, Tenn.,-based company announced its bankruptcy filing, which it blamed on the International Brotherhood of Teamsters union.
The $700 million bailout was made under the CARES Act during the COVID-19 pandemic. The Treasury Department’s summary of the loan transaction described YRC Worldwide, as Yellow
YELL,
+14.71%
was then known, as “a leading provider of Department of Defense supply transportation and other delivery services for the U.S. Government.” Hill, a Republican who is currently the sole member of the Congressional Oversight Commission, has been a vocal critic of the loan. “Anytime you have government directly involved in trying to make credit decisions for businesses, you’re going to have catastrophic problems,” he told MarketWatch on Tuesday. Related: Yellow blames bankruptcy filing on ‘bullying’ by Teamsters The congressman has argued that Yellow should never have received the $700 million bailout. “Yellow, certainly for many years following the financial crisis in 2008-09, would be deemed an overleveraged, struggling company,” he said. Hill is also the author of a Congressional Oversight Commission report on the Yellow bailout that was released in June. “Overall, the Commission continues to believe that the Treasury and the Defense Department made missteps in deeming Yellow as critical to maintaining national security and in executing the loan to Yellow,” the report said. So could the government take a …
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The $700 million bailout was made under the CARES Act during the COVID-19 pandemic. The Treasury Department’s summary of the loan transaction described YRC Worldwide, as Yellow
YELL,
+14.71%
was then known, as “a leading provider of Department of Defense supply transportation and other delivery services for the U.S. Government.” Hill, a Republican who is currently the sole member of the Congressional Oversight Commission, has been a vocal critic of the loan. “Anytime you have government directly involved in trying to make credit decisions for businesses, you’re going to have catastrophic problems,” he told MarketWatch on Tuesday. Related: Yellow blames bankruptcy filing on ‘bullying’ by Teamsters The congressman has argued that Yellow should never have received the $700 million bailout. “Yellow, certainly for many years following the financial crisis in 2008-09, would be deemed an overleveraged, struggling company,” he said. Hill is also the author of a Congressional Oversight Commission report on the Yellow bailout that was released in June. “Overall, the Commission continues to believe that the Treasury and the Defense Department made missteps in deeming Yellow as critical to maintaining national security and in executing the loan to Yellow,” the report said. So could the government take a …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]