Yellow Resists MFN’s Move to Convert Bankruptcy to Chapter 7

Yellow Corp. opposed hedge fund MFN Partners LP’s request to convert its Chapter 11 case to trustee-run Chapter 7 liquidation proceeding, arguing it would incur higher administrative costs.

The bankrupt trucking company contended in an objection filed Monday in the US Bankruptcy Court for the District of Delaware that a court-appointed trustee would “likely result in a mountain of administrative expenses,” as they would lack historical knowledge of the case, hire advisers, and would have to learn about pending litigation quickly.

Yellow is working with its largest creditors to revise the third amended plan in line with recent court rulings ...