(Reuters) – Apollo Global Management is selling off a $500 million term loan given to Yellow Corp and dropping plans to extend financing to fund the freight group’s bankruptcy, the Financial Times reported on Tuesday.
The term loan was sold to a fund owned by Citadel, the FT reported.
Yellow shares closed down 31% following the FT report.
Yellow, Apollo and Citadel did not immediately respond to Reuters’ requests for comment.
An attorney for Yellow said last Wednesday that the company would not seek court approval to borrow $142.5 million from Apollo as planned and was instead seeking time to explore alternate loan offers.
Yellow has $1.3 billion in debt payments due in 2024, including a $567.4 million term loan due in June and a $729.4 million U.S. Treasury loan due in September.
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(Reporting by Ananta Agarwal in Bengaluru; Editing by Anil D’Silva)