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Yellow Corp. Former Employees May Receive Back Pay for Unused Leave

Former Yellow Corp. workers could receive compensation for unused vacation and sick leave nearly three years after the less-than-truckload carrier's collapse, the Teamsters union said Wednesday. A Delaware federal bankruptcy court approved a final liquidation plan in November that directs asset sale proceeds into a liquidating trust. The transition is expected in June or July. Employee claims are classified as priority under the plan and must be paid. However, the Teamsters and Yellow's liquidating trustee have not yet settled on claim valuations. Yellow's largest shareholder, hedge fund MFN Partners, appealed a pension withdrawal liability settlement, though the bankruptcy plan can proceed. The liquidating trustee will resolve remaining claims and distribute funds to creditors. Yellow's estate holds a $601 million cash balance. The Teamsters are also pursuing separate WARN Act claims alleging inadequate layoff notice.