Yellow Corp. Avoids Immediate Liquidation in Bankruptcy Case

The judge overseeing Yellow Corp.'s case won’t convert it to liquidation at this time, despite a request from its largest shareholder, which argues that the bankruptcy has incurred excessive costs.

Judge Craig T. Goldblatt of the US Bankruptcy Court for the District of Delaware requested at a Tuesday hearing that the truck company provide information about a proposed economic settlement. The settlement is expected to be discussed at a hearing on July 8.

If it fails to do so, it would have to present a “waterfall” plan—a structured method for distributing funds to creditors based on priority—within 30 days.

If ...