Republished with full copyright permissions from The San Francisco Press.

Trucking giant Yellow Corporation’s recent struggles have been widely discussed, with its operations coming to a halt and bankruptcy looming. However, behind the scenes, private equity and hedge funds are making moves that paint a different picture of the company’s fate.

Apollo Global Management Inc., one of the major creditors, is closing in on a deal to provide Yellow Corp. with fresh capital amid its upcoming bankruptcy proceedings. This move positions Apollo favorably due to its majority ownership of one of Yellow’s term loans. While negotiations are ongoing and subject to change, it signifies a potential lifeline for the struggling trucking giant.

Yet, Apollo is not the sole player with a stake in Yellow’s future. Another key player emerging from the shadows is MFN Partners. Starting from July 10, MFN Partners has been gradually amassing shares of Yellow Corp., initially owning a 24.6% stake. As of their latest filing with the Securities and Exchange Commission, MFN Partners has accumulated 42.5% ownership, equivalent to 22.07 million shares. With an additional 3.06 million shares needed to gain 50% ownership, they would gain control over important decisions such as board selection and the appointment of a new CEO.

Furthermore, if MFN Partners manages to achieve a majority stake in Yellow Corp. with fewer than 300 shareholders, they would also have the opportunity to privatize the company entirely.

The recent actions of these private equity and hedge funds reinforce the notion that although Yellow Corp. faces significant challenges, there may be a glimmer of hope for its future. While the company’s union, analysts, and even Yellow itself highlight its precarious position and imminent liquidation, the involvement of these financial heavyweights suggests a different outcome.

Indeed, the implications of their investments and continued involvement raise questions about the anticipated direction of Yellow Corp. Will Apollo’s fresh capital injection serve as a catalyst for a remarkable turnaround? Will MFN Partners be successful in acquiring majority control and reshaping the company’s leadership?

Only time will tell. As industry observers and stakeholders eagerly await further updates, it is clear that the journey ahead for Yellow Corp. will be closely watched by many.