Yellow Corp. Settles Remaining Pension Claims in $526 Million Deal
Defunct Yellow Corporation has reached a settlement with four multiemployer pension plans for up to $526 million, resolving outstanding withdrawal liability claims and ending a three-year legal battle that began after the company filed for bankruptcy in August 2023. The agreement is backed by MFN Partners, its largest shareholder, who will drop pending appeals as part of the deal. If approved by a Delaware federal bankruptcy court, it would allow the liquidating trust to begin making final distributions to creditors and former employees. The settlement includes priority payments for employee claims related to unused paid time off (PTO) and sick leave. Previously, Yellow had argued that its withdrawal liability was nonexistent due to federal pension bailouts in 2021 or miscalculations by the pensions and regulators. The resolution is expected to save years of litigation costs and enable faster creditor payouts.
