- 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.
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.