Bankrupt Trucker Yellow Loses Ruling Over $6.5 Billion in Pension Debts
- Funds have upper hand on retirement penalty’s calculation
- Ruling sent shares plunging a record 88% on Sept. 13
This article is for subscribers only.
Bankrupt trucker Yellow Corp. and its hedge fund owners lost a key court ruling over $6.5 billion in debt that pension funds claim the defunct company owes them, likely wiping out most recovery for shareholders.
US Bankruptcy Judge Craig T. Goldblatt sided with pension funds over how to calculate the penalty Yellow must pay for canceling workers’ retirement plans when the company shut down last year. The ruling, issued last week, means there is little chance the company will have any cash left for shareholders like hedge fund MFN Partners after Yellow finishes selling its real estate portfolio and paying the pension penalty.