The long-running wind-down of Yellow Corp. reached a decisive milestone on Monday, November 17, when a Delaware bankruptcy judge confirmed the company’s Chapter 11 liquidation plan, paving the way for distributions that could total up to $700 million to remaining creditors, including former employees. The ruling caps more than two years of asset sales and litigation following the carrier’s July 2023 shutdown.
Judge Craig T. Goldblatt rejected objections from Yellow’s largest shareholder, MFN Partners, and concluded creditors are better off under the confirmed Chapter 11 plan than in a Chapter 7 conversion—largely because additional legal and administrative costs would erode any theoretical upside from starting over. He also found the plan was not proposed in bad faith and contains standard guardrails for potential conflicts.
MFN amassed roughly a 42.5% equity stake as Yellow’s collapse unfolded in 2023, wagering that proceeds from selling 300-plus terminals and other assets would exceed liabilities. MFN and an affiliate argued the plan put conflicted creditors in control and would shortchange unsecured recoveries compared with a Chapter 7 liquidation — arguments the court overruled. MFN can still seek appellate review, creating a narrow window of uncertainty as the estate moves toward effectuating the plan.
For the trucking industry, confirmation means the last big procedural hurdle is cleared for Yellow’s estate to finalize distributions and shut the books. The decision reduces the risk of further delays that could have tied up cash for months while adding legal expense to a case that had already accrued about $235 million in professional fees by late September. With the plan now confirmed, a liquidating trust can stand up to make payments and finish remaining claim reconciliations — a cleaner exit than a Chapter 7 reset, which would have invited new claims and costs.
Two dynamics will matter for fleets and shippers watching from the sidelines. First, the confirmation solidifies the post‑Yellow map of LTL capacity: competitors that acquired terminals over the past year can proceed with integration plans without worrying that a last-minute Chapter 7 conversion will scramble leases, permits, or local entitlements. Second, timing clarity around distributions helps former employees and trade creditors plan cash flow, reducing secondary pressures in local freight markets where Yellow once operated. While the court’s order could face an appeal, the judge’s explicit cost‑benefit calculus signals a high bar for any effort to pause implementation.
What’s next: expect the estate to move quickly to put the plan effective, constitute the liquidating trust’s oversight, and sequence distributions as claims are allowed. The court noted that the trust’s governance includes major Teamsters-affiliated pension funds, a structure the judge deemed adequately safeguarded against conflicts. For carriers, brokers, and shippers, the takeaway is that the Yellow saga is finally entering its last administrative chapter — without the disruptive detour of a Chapter 7 do‑over.
Sources: FreightWaves, Law360, Yahoo Finance
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