When will Yellow Corp. employees actually receive their payments?

The liquidating trust transition is expected in June or July 2025. However, the Teamsters memo emphasizes that settlements must still be finalized on claim valuations and approved by bankruptcy court. Payments will likely follow in phases, with distributions made via direct deposit or mail depending on employee banking status.

What types of claims are being prioritized in the liquidation plan?

Employee claims were classified as priority under the approved liquidation plan, including accrued and unused paid-time-off, individual and group grievances, and unpaid healthcare and pension plan contributions. These take precedence over general unsecured creditors, though the final valuation amounts remain under negotiation.

Why are there still disagreements over claim values after three years?

According to the Teamsters memo, while substantial progress has been made on agreeing to claim amounts, disagreements persist on valuation methodology. Additionally, MFN Partners' appeal of the pension withdrawal liability settlement and potential objections from other creditors add complexity. The bankruptcy court must ultimately approve any settlement reached.

Could the WARN Act appeal affect payment timelines?

Possibly. The Teamsters appealed a court decision that denied WARN Act claims (alleging inadequate layoff notice). The appeal outcome is pending. If successful, this could create additional claims that affect overall settlement amounts and distribution timing, though the main liquidation plan can proceed regardless.

What does Yellow's $601 million cash balance mean for payments?

The April 2025 operating report showed a $601 million cash balance from asset sales placed in the liquidating trust. This balance is intended to cover priority employee claims, creditor distributions, and trustee expenses. However, the final per-employee payment depends on total validated claims and court-approved valuations.

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's collapse, former employees are approaching a potential resolution for accrued vacation and sick leave claims worth millions. A federal bankruptcy court approved a liquidation plan in November that prioritizes employee claims, with asset proceeds now being placed in a liquidating trust scheduled for transition in June or July 2025. However, significant hurdles remain: the Teamsters and Yellow's estate have not yet agreed on claim valuations, MFN Partners (the largest shareholder) is appealing pension liability settlements, and other creditor objections could still emerge.

The case underscores the cascading labor impacts when major LTL carriers fail abruptly. Yellow's August 2023 shutdown affected thousands of workers and rippled through the freight sector; the unresolved employee claims have left many in financial limbo for years. The company's $601 million cash balance as of April provides a potential source for payments, but the complexity of multiple claim categories—PTO, grievances, healthcare fund contributions, and ongoing WARN Act disputes—creates uncertainty about final distribution timing and amounts.

For supply chain and logistics professionals, this case illustrates both the human cost of carrier consolidation and the operational risks of counterparty default. The delayed resolution highlights how bankruptcy proceedings can extend financial exposure and underscores the importance of early warning systems and contingency planning when evaluating carrier stability.

#yellow-corp-bankruptcy

#ltl-carrier-collapse

#employee-claims

#teamsters-settlement

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What if the WARN Act appeal succeeds, adding 15-20% to total employee claims?

Model a scenario where the Teamsters win their WARN Act appeal, resulting in additional liability claims representing 15-20% of current validated employee claims. Assess how this increases total payout obligations against the $601 million liquidating trust balance and affects payment distribution schedules to individual workers.

Run this scenario

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What if creditor objections delay trustee approval by 4-6 months?

Model a scenario where other creditors lodge formal objections to the Teamsters' settlement, requiring extended bankruptcy court proceedings. Simulate how a 4-6 month delay in trustee final approval would push payment distribution from mid-2025 into Q4 2025 or early 2026, affecting employee cash flow and financial stability.

Run this scenario

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