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Bankrupt Yellow settles with pensions that sought billions
The Sunday Guardian
|November 30, 2025
Yellow Corp has reached settlements with 14 pension plans that had sought over $7.4 billion from the bankrupt trucking company.
The pension plans agreed to take a reduced payment, which will end years of litigation over claims that Yellow cannot afford to pay and allow Yellow's junior creditors to collect up to $7.4 million from the company's bankruptcy sales proceeds, according to settlement documents filed Wednesday in Delaware bankruptcy court.
Yellow shut down in 2023 amid a dispute with its main employees' union, and sold all of its assets in bankruptcy, including shipping terminals, other real estate and its fleet of trucks. Those sales generated more than enough to pay its top lenders and a government-backed COVID-19 pandemic relief loan, but they left other creditors, like the pension plans, fighting to get back a fraction of what they are owed.
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