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A federal bankruptcy judge ruled that the estate of Yellow Corp. is liable for $6.5 billion in debt claims made by its pension funds.
Judge Craig T. Goldblatt ruled the “withdrawal liability” claims must be paid out to the 11 multi-employer pension plans that the insolvent trucking firm exited when it shut down last July. In the time since, the company has avoided payment to any of the funds.
The judge did not set a payment amount, or calculate how much is allocated to each individual pension plan.
Earlier this year, Yellow already sold off 130 owned terminals for $1.88 billion and 23 leased properties for $92 million in separate auctions, and sold off 60,000 trucks, trailers and equipment for roughly $114 million. While this was enough to cover all of Yellow’s secured debt, including the $850 million it owed the U.S. Treasury, it will not satisfy the pension claims.
As of Sept. 2, the trucking firm had $350 million...