Core Viewpoint - Yellow Corp. has reached a settlement with 14 multiemployer pension plans regarding over $7.4 billion in claims following its 2023 shutdown [1]. Group 1: Settlement Details - A federal bankruptcy court in Delaware is reviewing a settlement that includes approximately $1.4 billion in withdrawal liability and other claims from the pension plans, with the Central States Pension Fund holding just over half of this amount [2]. - The pension plans and Yellow Corp. have been involved in expensive litigation for the past two years to negotiate exit fees [3]. Group 2: Legal Proceedings - Yellow Corp. lost an appeal in September to dismiss the withdrawal liabilities, arguing that the pension plans were fully funded due to federal bailout money received in 2021. However, the U.S. Court of Appeals upheld the Delaware court's decision that the American Rescue Plan allowed the Pension Benefit Guaranty Corp. to create guidelines ensuring bailout funds were used solely for plan benefits and costs [4]. Group 3: Financial Implications - The pension plans ultimately accepted lower amounts as potential recoveries from Yellow's estate continue to decrease, with estimates suggesting litigation costs could reach tens of millions of dollars [5]. - Yellow's estate has been largely liquidated, with proceeds from approximately $2.4 billion in real estate sales and $176 million from fleet sales used to cover $1.2 billion in secured debt and other claims [5]. - Recent estimates indicate that the estate will have only $600 million to $700 million available to satisfy outstanding claims, including those from pensions and former employees [6].