FW: Yellow’s Chapter 11 plan includes rights offering, REIT

FREIGHTWAVES reports:

A final Chapter 11 plan to liquidate Yellow’s remaining assets could include a reorganization wherein the defunct company’s major shareholders backstop a rights offering to stand up a subleasing or real estate investment trust to manage the remaining properties. The plan would include the payment of all allowed general unsecured claims, leaving the reorganized equity interests to shareholders, a Monday filing with a Delaware bankruptcy court showed.

However, that plan is contingent on Yellow (OTC: YELLQ) receiving a favorable ruling on withdrawal liability claims currently before the court. Pension funds that Yellow once contributed to say they are owed as much as $8.6 billion from the company’s withdrawal. Yellow maintains it owes just a fraction of the claimed amounts as many of the pension funds no longer have unfunded vested benefits due to a 2021 relief package from Congress… 

The full post can be read here.