Trump administration lent a troubled company $700 million. The company was worth only $70 million

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The Trump administration just lent a troubled trucking company $700 million. The company was worth only $70 million

https://www.cnn.com/2020/07/01/business/yrc-federal-loan/index.html

New York (CNN Business)The US Treasury is giving a $700 million loan to YRC Worldwide, a troubled trucking company that warned in May it was in danger of going out of business.

That's an enormous sum for a company whose stock had plunged 27% this year and was worth only $70 million as of Tuesday's close.
Long-term competitive problems had taken the company's stock down 85% over the last five years. But shares of YRC (YRCW) more than doubled in value in pre-market trading on the news of the bailout.

US taxpayers will end up owning 30% of the company's stock as part of the loan agreement.

The loan is not part of the federal CARES Act meant to help small businesses. Instead, it is meant to provide help to businesses critical to national security. Treasury's statement said the loan was justified by the fact that the company provides a majority of the trucking services moving pallet-sized shipments of freight for the US military, a segment of the industry known as "less-than-truckload" or LTL.

"Treasury's determination was based on a certification by the Secretary of Defense that YRC is critical to maintaining national security," said Treasury in its statement.

We can always count on Republicans to use our tax dollars efficiently unlike those Democrats who always waste it on fraud and abuse.