Yellow Submits Final Chapter 11 Plan, Seeks Creditor Deal

Yellow Corp. has submitted its final Chapter 11 bankruptcy plan, outlining how it intends to repay creditors and dispose of its remaining assets. Filed on September 2, the plan is a crucial step for the less-than-truckload carrier, which abruptly ceased operations in July 2023. Administrators are seeking an additional 60 days, through December 30, to gain creditor approval for the plan, with a hearing set for September 16.

Key issues include settling unsecured claims, such as pension liabilities, Worker Adjustment and Retraining Notification (WARN) Act violations, and personal injury claims. Central to the case is the dispute over Yellow’s $5 billion pension liability to the Central States Pension Fund, which remains under court consideration.

Yellow has already repaid secured creditors, including the U.S. Treasury, following the sale of real estate and equipment that raised over $2 billion. The final plan also opens the door for potential restructuring, including a $150 million rights offering, which would give Yellow an enterprise value of $1.4 billion.

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Source:

https://www.ttnews.com/articles/yellow-final-bankruptcy-plan