Multiple pension funds reach $526M in Yellow pension settlements
Yellow Corp. liquidation trustee Daniel Golden announced on August 28 that multiple union pension funds have again reached a settlement regarding Yellow Corp. pensions, totaling nearly $526 million, pending bankruptcy court approval. Previously in April, the bankruptcy judge had rejected a related settlement proposal for not conforming to established legal methods. The new agreement involves pension funds in New York, Western Pennsylvania, and others, and is supported by parties including MFN Partners, aiming to avoid years of litigation.
Dive Brief:
- Multiple union pension funds have again reached settlements over Yellow Corp. pension money, which still hinge once again on a bankruptcy court’s approval.
- The amounts total nearly $526 million, primarily due to obligations to the New York State Teamsters Conference Pension & Retirement Fund, according to an Aug. 28 statement by Yellow’s liquidating trustee, Daniel Golden.
- A court hearing is scheduled for Sept. 11.
Dive Insight:
In April, a bankruptcy judge rejected settlement amounts involving the Teamsters and International Longshoremen’s Association, citing nonconformity with an established legal methodology as parties disputed how much is owed.
A five-step methodology capped amounts, and those earlier settlements exceeded those figures, blocking the payouts.
Under the new deals, obligations to the New York Teamsters fund would be reduced by $26.5 million. Other reductions include millions of dollars less for pension funds tied to the Teamsters’ New Jersey-based Local 617 and ILA’s Local 1730.
The deals also include nearly $126.4 million to the Western Conference of Teamsters Pension Trust Fund; $71.2 million to the Western Pennsylvania Teamsters and Employers Pension Fund; and nearly $5 million to the International Association of Machinists Motor City Pension Fund.
Yellow’s debtors — and MFN Partners, a hedge fund, along with its affiliates — have been involved in the dispute, and the liquidating trustee’s statement suggested that the settlements will avoid “years of continued litigation” and represent the best interests of the bankruptcy estates.