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Yellow hopes to have $257 million Teamsters claim disallowed
By Sarah Lizee
Olympia, Wash., March 26 – Yellow Corp. filed an objection to the Western Conference of Teamsters Pension Trust Fund’s $257 million claim against the company, according to documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.
Yellow said the claim is “clearly invalid,” since the debtors withdrew from the Western Conference in June 2009, over 14 years ago.
The company said the Western Conference hadn’t attempted to withdraw liability until Yellow filed bankruptcy in 2023.
Of the $257 million asserted amount, $88 million is alleged to be interest on withdrawal liability payments that were never demanded and never came due, Yellow said.
“Permitting Western Conference’s claims would create a massive injustice to the debtors and their unsecured creditors and grant Western Conference a windfall,” the company said in the objection.
Teamsters lawsuit dismissed
In related news, Yellow’s $137 million-dollar lawsuit against the International Brotherhood of Teamsters has been dismissed by U.S. District Court judge Julie A. Robinson, according to a Tuesday afternoon press release from the union.
The Teamsters called the lawsuit a “blatant attempt” by Yellow to “undermine the rights of workers and discredit the Teamsters.”
“While Yellow abuses the legal system by filing bogus claims against the Teamsters Union, the company's lawyers are actively working to attack retirees and deny workers what they are legally owed," Teamsters general secretary-treasurer Fred Zuckerman said in the release.
Yellow is a provider of regional, national and international shipping services based in Nashville. The company filed bankruptcy on Aug. 6, 2023 under Chapter 11 case number 23-11069.
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