Trucking firm Yellow is considering a sale of assets and real estate through a bankruptcy filing, which may come as soon as this weekend. According to a report by Bloomberg News, the company’s assets have attracted the interest of a potential financial bidder. The move is a way to address the company’s mounting debt. The company’s failure would be another blow to the trucking industry, potentially resulting in job losses and supply chain disruptions.

The company’s current troubles stem from ongoing negotiations with its unionized workers, a contentious $700 million pandemic-era loan from the government, and other bills the trucking giant has racked up over time. The US government is the company’s largest creditor, holding 29.6% of its shares, which would be wiped out in a bankruptcy filing.

As it is, Yellow’s debt has made its creditors wary about lending more money. The company’s debt is backed by a pledge of its terminal real estate and vehicle stock, but that would likely disappear in a liquidation. In addition, the company’s 30,000 employees would be out of a job. Shippers that rely on Yellow’s network of line hauls to move freight between terminals will need to find alternative means of transporting their loads.

Despite these challenges, Yellow will likely avoid bankruptcy by selling its assets and real estate through the bankruptcy process. This could provide the trucking company with much-needed liquidity to continue operating while it attempts to negotiate a solution with its creditors.

However, if the plan fails, the company’s assets will be sold in a liquidation process. Liquidations are relatively common in the trucking industry, especially for companies that cannot get the cash they need to meet their debt obligations. The company’s fate could affect the broader trucking market, leading to a decline in shipping volume and higher freight rates as the industry struggles with strained capacity.

FreightWaves’ channel checks suggest that Yellow customers have been preparing for a shutdown. The company’s refusal to make two pension-fund payments earlier this month spooked the shippers, who began moving their cargo to other carriers. The company averted a strike this week, stating it would pay the outstanding amounts in 30 days.

A Yellow shutdown would be a blow when the trucking economy struggles to absorb more capacity, but its competitors are well-positioned to pick up some of the business. In addition, truckload networks are plentiful, so the influx of Yellow’s volume will likely be manageable for the most part.