(Reuters) – Collectors led by Apollo World Administration Inc. are near closing a deal to supply Yellow Corp with contemporary cash throughout an upcoming chapter, Bloomberg Information reported, citing folks accustomed to the matter.

Shares of Yellow rose 78% to $3.14 in afternoon buying and selling.

The report mentioned the U.S. asset supervisor, which owns most of Yellow’s time period loans, is well-positioned to supply assist and is within the technique of finalizing a deal to steer debtor-to-debt financing for the cash-strapped trucking firm.

Yellow declined to remark, whereas Apollo didn’t instantly reply to a Reuters request for remark.

Yellow, previously YRC Worldwide, is the third largest trucking firm in the USA. It transports cargo from a number of truckers in single trailers and focuses on “lower than truckload” (LTL) freight, the transportation of products that do not require a full truckload.

It not too long ago averted a threatened strike by the 22,000 employees representing Teamsters after paying greater than $50 million it owed in advantages and pensions.

Final week, the Teamsters union mentioned Yellow had ceased operations and filed for chapter after failing to reorganize and refinance greater than $1 billion in debt.

The provider, which purchased corporations like Roadway in 2003 and USF in 2005 to spice up its LTL choices, reported whole debt of $1.54 billion final 12 months, in response to Refinitiv knowledge.

The corporate’s struggles have been exacerbated by a pointy drop in e-commerce shipments from early pandemic highs and an industry-wide decline in cargo volumes over the previous 12 months.

Yellow has $1.3 billion in debt funds due in 2024, together with a $567.4 million time period mortgage due in June and a $729.4 million U.S. Treasury mortgage due in September.

(Reporting by Priamvada C in Bengaluru; Enhancing by Anil D’Silva and Devika Syamnath)