YELLOW CORP NEW COM (NASDAQ:YELL) attorney Allyson Smith reportedly disclosed getting an acquisition offer from Estes Express.

As a part of the bid, Estes had offered to provide a bankruptcy loan.

However, Yellow had decided to accept a $142.5 million loan offer from hedge fund Citadel and MFN Partners, its largest shareholder.

Apart from this, Citadel bought Yellow's pre-bankruptcy debt of around $500 million.

The new loan reflects a 180-day period for Yellow to solicit higher bids for its real estate assets and divest its fleet of trucks. 

The report noted that Estes' offer to buy the shipping terminals almost covers all of Yellow's pre-bankruptcy debt, including over $700 million owed to the U.S. Treasury Department.

Recently, Yellow filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.