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The owner’s equity would be wiped out to zero. And 29.6% of the company is owned by the USA as part of that Covid era loan. The real story here is the non unio
by koolba 3y ago
The owner’s equity would be wiped out to zero. And 29.6% of the company is owned by the USA as part of that Covid era loan.
The real story here is the non union shops eating Yellow and the other union shops lunch. Government loans just kept it alive to die a slower death.
- SoftTalker 3y agoYes, government bailouts of private companies really need to stop. It just prolongs the problem and doesn't allow the market to properly respond to risks and rewards.
- nickff 3y agoThis bailout was not for the shareholders, it was for the union (as is often the case). Bailouts usually benefit creditors, not the equity holders. edited for clarity
- SoftTalker 3y agoWhy should creditors get bailed out? If they do, they'll keep making risky credit decisions. If they get burned, they'll be more careful next time.
- nickff 3y agoI don't think they should get bailed out, but to be clear, being 'burned' means being laid off, with an end to wage payments, and no severance.