MFN Complains of Yellow Bankruptcy Costs in Bid for Chapter 7

Hedge fund MFN Partners LP asked a court to convert Yellow Corp.’s Chapter 11 bankruptcy to a trustee-controlled Chapter 7 liquidation, arguing the company has spent too much money as it works to sell off assets and resolve litigation.

MFN, Yellow’s largest shareholder, said in a Tuesday motion in the US Bankruptcy Court for the District of Delaware that Yellow’s case is generating seven-figure monthly administrative expenses from legal and financial advisers to the company and its unsecured creditors committee.

The hedge fund argued that Chapter 7, which would bring in a trustee to oversee the bankruptcy and reduce the ...