One aspect of the Yellow bankruptcy that looms in the background is that the LTL carrier has not defaulted on its senior secured debt and may not do so.
Buried within a more than 300-page document that spells out the provisions of the debtor-in-possession (DIP) financing that Yellow has obtained from Apollo Management is the history of the “roll-up” agreement that the filing says has been agreed upon by the other secured lenders.
In a bankruptcy, lenders of the DIP funds go to the head of the...