pension

Pension tussle taking center stage in Yellow bankruptcy

Yellow Corp.’s bankruptcy case is progressing on several fronts—but not yet on the one with the biggest dollar amounts at play.

In recent weeks, Yellow attorneys exchanged filings with their peers at the Central States Pension Fund and the federal Pension Benefit Guaranty Corp. in U.S. Bankruptcy Court for the District of Delaware about how to resolve the question of the company’s remaining pension obligations. Yellow, which was the sixth-ranked carrier on the 2023 FleetOwner 500: For Hire list before it shut down in July, claimed in December that the PBGC’s early-2023 bailout of Central States meant the pension plan couldn’t then also claim billions from Yellow.

International Brotherhood of Teamsters-affiliated Central States asked Yellow last summer to cover nearly $5 billion in withdrawal liabilities (the company’s alleged share of unfunded benefits) and another $900 million in so-called participation guarantees. Yellow called those claims an attempt to collect “hundreds of millions of dollars in damages it has not sustained” and said pension officials were asking for “free money.”

Lawyers for Central States responded in early January not by directly addressing the legal merits of their claim but by saying that various federal courts have held that a dispute over pension

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January 25, 2024 by ATTORNEY

Albany Diocese says pension fight not why it filed for bankruptcy

SCHENECTADY — When the Roman Catholic Diocese of Albany filed for Chapter 11 last week, it noted that its outstanding litigation with state Attorney General Letitia James and others over the collapse of the St. Clare’s Hospital pension plan is not the reason why it sought bankruptcy protection.

Rather, it was the more than 440 lawsuits that have been filed against the diocese under the state’s Child Victims Act since 2019 — 50 of which have been settled — that prompted the diocese to file for bankruptcy.

The diocese does acknowledge the ongoing St. Clare’s litigation, albeit briefly, in its bankruptcy papers filed March 15 in U.S. District Court in Albany.

But the papers note that the St. Clare’s cases, which have been consolidated in state Supreme Court in Schenectady for both discovery and trial, were “not a precipitating cause” of the bankruptcy as might be assumed.

In fact, the diocese went out of its way to try and assure St. Clare’s pensioners in a press release issued last week that the pension lawsuits are “not the diocese’s purpose for filing” Chapter 11, although it will have the effect of putting the pension litigation “on hold” during the bankruptcy

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March 21, 2023 by ATTORNEY
April 2024
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