Yellow Corp reaches settlement for unpaid pension plans seeking $7.4 billion

Yellow Corp has reached a settlement with 14 pension plans seeking a collective $7.4 billion from the bankrupt trucking company. 

The pension plans agreed to take a reduced settlement after years of litigation disputing Yellow’s claims that it cannot afford to pay the plans the requested $7.4 billion. The settlement documents were filed in Delaware Bankruptcy Court on Wednesday, November 26th, reported Reuters.

Yellow initially lost an appeal over the pensions plans’ claims in September, but will not have enough funds to pay the amount, even after selling off all assets. Yellow expects to have  between $600 million and $700 million to pay all of its creditors, including the pension plans. 

Yellow shut down in 2023 during a dispute with an employee union. The company sold all of its assets in bankruptcy and was able to pay back all major creditors and its government COVID-19 pandemic relief loan. All junior creditors, including the pension plans, have been fighting to get back the money they are owed ever since.