Reuters Congressional pressure is growing on the U.S. Treasury to help salvage trucking giant Yellow from bankruptcy, from Republicans and Democrats alike, letters viewed by Reuters show.

Republican Senator Josh Hawley is the latest lawmaker to ask Treasury, in a letter on Thursday, to extend the terms of a controversial 700 billion pandemic loan granted by the Trump administration to Yellow.

It follows separate letters sent by Republican Senator Roger Marshall and Democrats Sherrod Brown and Bob Casey last month. Earlier this week, Democratic senators Elizabeth Warren and Ed Markey sent letters.

THE TAKE

Republicans and Democrats pushing Treasury could benefit Jack Cooper, one the largest U.S. privately owned auto transport companies, making its longshot bid to rescue Yellow from bankruptcy liquidation more likely.

Key to Jack Cooper39;s bid is convincing Treasury to extend the loan currently due at the end of September 2024 to the same time in 2026, allowing Jack Cooper to offer more favorable terms for Yellow.

NOTABLE QUOTE

A modification of the repayment terms will allow Yellow to obtain a buyer who will keep its assets together as a going concern that is, keep it in business as a player in the trucking sector, Hawley wrote, noting reports of such a buyer.

Making Yellows loan repayment terms more flexible, is a commonsense step to keep Yellows trucks on the road, and keep its workforce gainfully employed, he wrote.

CONTEXT

Yellow, formerly known as YRC,…