Legal
Judge Admits Error in Ruling on Trucker Yellow’s $6.5 Billion Pension Spat
- Pension victory over Yellow and hedge fund owner threatened
- Bankrupt trucker asks judge to reverse court loss over error
Yellow Corp. trucks at a facility in Hayward, California, in 2023.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
A court ruling that likely wiped out any recovery for shareholders of the bankrupt trucker Yellow Corp. contained an error that may require a key decision against the company to be reversed, a judge said on Monday.
US Bankruptcy Judge Craig T. Goldblatt told Yellow and its main shareholder MFN Partners LP that he erred when finding that the company had defaulted on its pension obligations before the trucker shut down and filed bankruptcy last year. The timing of any default could impact how much Yellow owes for withdrawing from an employee pension, according to court records.