Yellow, MFN Directed to Sort Out Bankruptcy Plan Disclosures

Yellow Corp. is nearing approval to begin polling creditors on its proposed wind-down plan after a judge held that it doesn’t need to include its largest shareholder’s statements challenging the proposal in its disclosures.

The fallen trucking company and a group of junior creditors clashed with hedge fund MFN Partners LP over the language in the plan documents during a Thursday hearing in the US Bankruptcy Court for the District of Delaware.

MFN urged the court to include a letter in the disclosures that encouraged an unsecured creditors class to vote against the plan. It opposed the plan in August, ...