Bankrupt Yellow Disputes PBGC Rules in $7.8 Billion Pension Feud

Yellow Corp. urged a Delaware bankruptcy judge to set aside regulations asserted by the Pension Benefit Guaranty Corp. to calculate the defunct trucking company’s pension withdrawal liability, saying the agency is unilaterally changing applicable rules.

If the US Bankruptcy Court for the District of Delaware adopts positions advanced by the PBGC on withdrawal liability, then a group of multiemployer pension plans that received $41.1 billion in government bailouts over the last two years will receive a windfall at the expense of Yellow’s other creditors, the company said in a July 26 court filing.

Yellow and its largest shareholder, hedge fund ...