Yellow’s $7.8 Billion Pension Feud to Proceed in Bankruptcy

Yellow Corp.'s fight over $7.8 billion in pension fund withdrawal liability claims will be handled in the course of the trucking company’s Chapter 11 case, not in arbitration, a Delaware bankruptcy judge ruled.

The dispute that stakeholders have called the most important issue in Yellow’s insolvency proceedings will be decided through a bankruptcy court trial to begin in early August, Judge Craig T. Goldblatt of the US Bankruptcy Court for the District of Delaware ruled Wednesday. The outcome of the claims dispute will determine the amount that hedge fund MFN Partners LP and other Yellow shareholders may reap in recoveries ...