Yellow nets $176M for rolling stock while ex-employees await payouts

Former employees still waiting to get paid

A recent memo from the International Brotherhood of Teamsters to the local unions representing former Yellow employees said a final liquidation plan currently before the court would designate employee claims accrued within six months of Yellow’s bankruptcy filing as “priority.” Those claims would be paid in full, subject to a cap of $15,150. Claims accrued outside of the six-month window would not be a priority and aren’t guaranteed to be paid.

The memo also referenced claims for unpaid health and welfare benefits, which have been filed separately on behalf of employees.

“Bargaining unit members should understand that the repayment they may receive from Yellow could sit anywhere from a few hundred dollars to $15,150, but not significantly more than that,” the memo stated.

The memo also said the IBT is still pursuing an appeal of the Delaware court’s ruling that Yellow was not liable for failing to provide employees with advance notice ahead of mass layoffs in July 2023. The Worker Adjustment and Retraining Notification Act case was appealed in March. The IBT said the maximum award could equal 60 days of pay, or up to $11,000, per eligible worker.

The fate of the fourth iteration of a final bankruptcy plan is uncertain as Yellow’s largest shareholder, MFN Partners, remains in opposition. The Boston-based hedge fund has already filed an objection to the amended plan with other creditors filing joinders to MFN’s objection in recent days. The current timeline calls for all objections to be filed with the court by Oct. 22. A confirmation hearing has been set for Nov. 5.

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