Ex-Guv Martinez Pulling Down $251K A Year From Troubled Trucking Company: Serves On Yellow Board Of Directors As It Heads For Bankruptcy And Feds Scramble To Recover Massive Bailout Loans

Former Gov. Susana Martinez may not have been in the workforce since leaving office in 2019 but we've confirmed she is pulling down $251,000 a year for her service as a member of the board of directors of Yellow, the 99 year old troubled trucking company making headlines as it heads into bankruptcy, shuts down operations, faces liquidation of its assets and mass layoffs. 

And there's this: 

In 2020 Yellow received $700 million in federal pandemic relief loans. Just months later Martinez, 64, was named to the Yellow board. The bailout is not a good look for the ex-Guv who proclaims herself an anti- big government Republican fiscal conservative and now the Feds have come looking for their money. From the WSJ:

The federal government lent Yellow $700 million during the height of the Covid-19 pandemic in 2020, providing a bailout that helped the company keep operating and attempt to expand its business. The Treasury Department took a roughly 30% equity stake in Yellow. At least three government investigations have since questioned the Trump administration’s handling of the loan. Now, Yellow has shut down its operations and is expected to file for bankruptcy following a string of mergers that left it bulging with debt and a standoff with the Teamsters union. Treasury’s equity stake could be wiped out. 

Whether the federal government recovers the money it lent would likely depend on how much Yellow raises by selling real estate and other assets in bankruptcy. But some lawmakers and analysts have said taxpayers could lose money. “I expect Treasury is just going to take its licks here,” said Adam Levitin, a bankruptcy expert at Georgetown law school. A Treasury spokeswoman said the department’s priority in the event of a bankruptcy was to recover as much of the loan as possible. A spokeswoman for Yellow said the company expects to pay back its loan in full. She said Yellow followed Treasury’s rules in applying for the loan and complied with the loan agreements.  

While Yellow, whose shares trade on the NASDAQ (YELL), is on life support, it still might not be the immediate end of the board of directors and Martinez's $251K annual payday. 

If Yellow files for Chapter 11 bankruptcy (not Chapter 7) the board could be allowed to remain intact but operate under a court's supervision. It would be up to the judge to decide whether the generous board paydays for Martinez and other directors would continue. 

ELECTION TIME

These off year city elections stay quiet until closer to the election but there is still work to be done by BernCo Clerk Linda Stover: 

On November 7th, New Mexico will hold its Regular Local Election. To guarantee that every voice is heard, Clerk Linda Stover urges residents to take a vital step: verifying their voter registration to ensure it is current. "It is crucial to confirm the accuracy of your voter registration, especially if any recent changes have occurred, such as a name change or a move within the county,” says Clerk Linda Stover. “We want to ensure that every eligible voter has the opportunity to participate in the upcoming Regular Local Election."  Residents can visit the Clerk’s office for in-person assistance or for a streamlined experience, residents can verify their information online here. 

THE NEW GENERATION

Reader Brandon Harris writes:

Mr. Monahan, Thank you and everyone who contributes to your blog about NM Politics. As someone who is young and beginning my career within our state's political scene, I appreciate your insights, expertise, and objective takes. I also wanted to say thank you for providing the congressional district insights last week from the Almanac of American Politics. They are extremely insightful and helpful (especially to us young folks) Keep up the awesome work!

We're marking 20 years in this space this year so our work has crossed the screens of several New Mexican generations. It's gratifying to hear from the latest--and we thank them and all of our readers for their continued patronage. It's quite the compliment.

That's it from this corner this week. 

Reporting from Albuquerque, I'm Joe Monahan. 

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