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Investigation: U.S. Expects to Lose at Least $500 Million on Bankrupt Trucking Company

By Adam Andrzejewski

Will this presidential election be the most important in American history?

Investigation by Adam Andrzejewski originally published by and

Trucking giant Yellow recently filed for bankruptcy due to rising labor costs and expensive debt. Unfortunately, taxpayers may take a hit after Yellow received a $729.2 million CARES Act loan that it only partially repaid before bankruptcy, according to The Wall Street Journal.

The Journal cited Treasury reports from July 1st that showed Yellow had only repaid $230 million in principle of its $729.2 million loan, along with another $68 million in interest payments. That means the government may lose $500 million from the loan.

To help guarantee the loan, the Treasury also took a 30% equity stake in the company, which it could end up losing pending bankruptcy proceedings.

The funds were disbursed in two tranches, with more than $300 million going toward paying off pre-existing business expenses and more than $400 million to pay for equipment.

The loan was made as part of a CARES Act program to keep critical supply chains running. Since Yellow had done some shipping for the military, it technically qualified for the loan. Now, the loan has come under scrutiny by both Republicans and Democrats, and there have been at least three government investigations into the circumstances surrounding the loan, according to the Journal.

A Congressional investigation found that while rank-and-file Pentagon officials recommended Yellow should not qualify for this loan, then-Treasury Secretary Steve Mnuchin called then-Secretary of Defense Mark Esper, who determined that Yellow would receive the funding.

Unfortunately, it’s unlikely the government will receive its full repayment, as the Treasury is third in line after other creditors to recover their loans in bankruptcy proceedings, and the assets that were bought with the loans have likely lost value.

Yellow should not have qualified for this program, and large spending programs open the doors to interference and malfeasance when they don’t contain detailed guidelines on who qualifies for funding.

By Adam Andrzejewski – The #WasteOfTheDay is brought to you by the forensic auditors at

This article was originally published by RealClearInvestigations and made available via RealClearWire.

Deneen Borelli

Deneen Borelli is the author of Blacklash: How Obama and the Left are Driving Americans to the Government Plantation. Deneen is a contributor with Newsmax Broadcasting. She is a former Fox News contributor and has appeared regularly on “Hannity,” “Fox & Friends,” “Your World with Neil Cavuto,” and “America’s Newsroom.” She has also appeared on Fox Business Network programs “Making Money with Charles Payne,” “The Evening Edit with Liz MacDonald,” and “Cavuto: Coast to Coast.” Previously, Deneen appeared on MSNBC, CNN, the BBC and C-SPAN. In addition to television, Deneen co-hosted radio programs on the SiriusXM Patriot channel with her husband Tom. Recently, Deneen co-hosted the Reigniting Liberty podcast with Tom. Deneen is a frequent speaker at political events, including the FreedomWorks 9.12.2009 March on D.C. which drew a crowd estimated at over 800,000 people. Deneen is also an Ambassador with, a social media platform that promotes free speech, and with the America First Policy Institute (AFPI) which advances policies that put Americans first. Deneen testified before the U.S. House of Representatives Committee on Natural Resources in May 2011 and before the Ohio House Public Utilities Committee in December 2011. Previously, Deneen was a host, Outreach Director with overseeing its outreach program, a Project 21 Senior Fellow, and Manager of Media Relations with the Congress of Racial Equality (CORE). Prior to joining CORE, Deneen worked at Philip Morris USA for 20 years. During her corporate career at Philip Morris she worked in various positions, her last as Project Management Coordinator in the Information Management department where she was responsible for the department’s mandated quality processes, communications, sales information and database management. Deneen began her Philip Morris career as a secretary and advanced to positions of increasing responsibilities. Deneen worked full-time and attended classes at night for 11 years to earn her B.A. in Managerial Marketing from Pace University, New York City. Deneen served on the Board of Trustees with The Opportunity Charter School in Harlem, New York. She appeared in educational videos for children, worked as a runway fashion model, and auditioned for television commercials. Her interests include ancient history, pistol target shooting, photography, and volunteering at her church. Deneen currently resides in Connecticut with her husband Tom.

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