Yellow, MFN Fight Pension Withdrawal Ruling at Third Circuit

Yellow Corp. and its largest shareholder urged a federal appeals court panel to overturn a bankruptcy court ruling on what they say are incorrect pension withdrawal liability calculations.

Lawyers for the fallen trucking company and MFN Partners LP told three US Court of Appeals for the Third Circuit judges during Wednesday’s oral arguments that the withdrawal estimate, which MFN says could result in billions for the pension plans, was overly inflated.

The dispute centers on how withdrawal liability is calculated, especially when pension plans receive special financial assistance funds. Yellow and MFN jointly petitioned to appeal.

An attorney for MFN, ...