Yellow Lands Bankruptcy Deals With Multiemployer Pension Plans

Bankrupt trucking company Yellow reached settlements with 14 multiemployer pension plans to resolve billions of dollars in disputed withdrawal liability claims.

After years of litigation, the pension funds agreed to accept less than their full claims and to contribute $7.4 million to benefit unsecured creditors whose recoveries could be reduced by the pension claims, according to a Nov. 26 filing in the US Bankruptcy Court for the District of Delaware.

The parties agreed on a methodology to calculate each fund’s withdrawal liability based on prior bankruptcy court and Third Circuit rulings. The plans also accepted a 25% reduction under a ...