This podcast episode explores the bankruptcy case of Yellow, a trucking company, highlighting the factors that led to its financial difficulties and the challenges faced by companies in the transportation sector. It also discusses the concept of "debtor in possession" (DIP), which allows the bankrupt company to retain control of its assets and sell them off to maximize their value. The episode further delves into the controversial practice of "dip lending," where loans with high interest rates and service fees are offered to bankrupt companies. The financial situation of Yellow is analyzed, with creditors believing that the company will be able to sell its assets for more than its total debt, potentially resulting in all creditors, including the US taxpayer, getting their money back.
