Yellow Proposes New Bankruptcy Plan After Court Loss on Pensions

Yellow Corp. is proposing a revamped bankruptcy plan that would liquidate assets to pay creditors after an earlier proposal favored by its hedge fund owners was effectively taken off the table by an unfavorable ruling.

The fallen trucking company aimed to provide a recovery to its equity holders, including MFN Partners, had Judge Craig T. Goldblatt of the US Bankruptcy Court for the District of Delaware ruled in its favor in September on a dispute over how to calculate its liability for withdrawing from pension plans. A favorable ruling for Yellow would have allowed the company to pay general ...