Yellow’s Largest Shareholder Attacks Bankruptcy Plan Disclosures

MFN Partners LP, Yellow Corp.'s largest shareholder, urged a bankruptcy court to reject the shuttered trucking company’s bid to solicit votes on a controlled liquidation plan that the hedge fund said “omits critical information” for stakeholders.

Yellow has made improvements to a prior Chapter 11 wind-down plan negotiated with an official committee of unsecured creditors but its revised proposal is still improperly slanted in favor of union and employee pension funds, among other junior creditors, the Boston-based investment firm said in a filing Tuesday with the US Bankruptcy Court for the District of Delaware.

In its objection to Yellow’s request ...