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Delaware bankruptcy court says Yellow owes pensions, stock drops 90%

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Delaware bankruptcy court says Yellow owes pensions, stock drops 90%


Shares of Yellow fell 90% Friday afternoon following a Delaware court’s decision on its pension liabilities. (Photo: Jim Allen/FreightWaves)

A Delaware bankruptcy court provided some clarity late Friday regarding $6.5 billion in withdrawal liability claims against Yellow Corp. The total amount the bankrupt less-than-truckload company will actually pay, however, remains to be decided. The mere fact that the estate will have to make good on some portion of the claims sent Yellow’s stock spiraling.

Shares of Yellow (OTC: YELLQ) fell 90% on Friday to 50 cents per share as stockholders realized their bet that the company’s asset value would exceed amounts owed to creditors may not come to fruition.

MFN Partners, which acquired a more than 40% equity stake in Yellow in the day’s leading up to a bankruptcy filing last summer, is the largest holder. However, the Boston-based private equity firm provided the company with bankruptcy financing during its liquidation, the interest and fees from which have helped offset its equity exposure.

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The U.S. Treasury holds a 30% stake in Yellow. The equity was issued as part of a collateral package for a $700 million Covid-relief loan it provided to the company in 2020.

Multiemployer pension plans (MEPPs) to which Yellow once contributed claim the carrier’s abrupt shutdown a year ago means it’s now on the hook for its allocable share of unfunded vested benefits. However, Yellow has said that the plans are fully funded now, following a 2021 pension fund bailout package (the American Rescue Plan Act). Yellow contends its exposure is a fraction of the amounts claimed, if anything.

The legislation provided pension insurer Pension Benefit Guaranty Corp. the authority to craft guidelines to make sure the money would only be used to cover plan benefits and costs, and not to allow employers to skirt withdrawal liability.

Pension Benefit Guaranty Corp. created two regulations. The first said special financial assistance awarded to the MEPPs wouldn’t be recognized as a plan asset until the money was actually received. The second mandated the recognition of the funds would be phased in over time even though they were distributed in a lump sum.

The organization said the goal was to keep other contributing employers from using the bailout as a way to exit the plans. Immediate recognition would mean the MEPPs are fully funded, removing any unfunded vested benefits and consequently an employer’s withdrawal liability. That could have created a mass exodus from the plans, PBGC claimed.

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Judge Craig Goldblatt’s Friday opinion sided with both the MEPPs and to an extent Yellow.

He said PBGC acted within its authority when putting up the guardrails on the program and that the MEPPs didn’t have to recognize the payments as an asset until received, and that they could be phased in. The implication is that Yellow is now responsible for some form of withdrawal liability to 11 different MEPPs that received government funds.

Central States Pension Fund holds nearly $5 billion in withdrawal liability claims against Yellow. It was awarded $35.8 billion in special financial assistance on Dec. 5, 2022, but didn’t receive the funds until Jan. 12, 2023, after its plan year ended. Yellow filed for bankruptcy on Aug. 6, 2023. The unfunded vested benefit calculation used plan year 2022 to determine the amount owed.

“The regulations implement Congress’s specific directive in the American Rescue Plan Act that special financial assistance be used only to pay plan benefits and costs,” Goldblatt said. “The regulations prevent such funds from instead being used, in effect, to reduce amounts that employers would otherwise be required to pay upon withdrawal from a plan.”

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However, Goldblatt also entered a partial summary judgment in favor of Yellow, citing that the 20-year cap (established by the Employee Retirement Income Security Act) should be placed on the company’s total withdrawal exposure. Essentially, the court ruled that Yellow is responsible for 20 times its annual contribution amount per the statute. Past court filings from Yellow have estimated a total liability of roughly $1 billion when using the 20-year cap.

Yellow previously asserted discounting to present value should apply to the 20-year stream of payments. However, Goldblatt said its default on the contributions accelerates the amounts to “presently due and owing,” and no discounting is needed.

He also upheld an agreement inked between Yellow and Teamsters funds in New York and Western Pennsylvania. Yellow reentered those funds in 2013 under a deal in which it would contribute just 25% of the usual rate, but it would repay any withdrawal liabilities assuming a 100% contribution rate if it withdrew.

Goldblatt directed the parties to hash out the actual amounts due. He said the task may be “relatively easy to resolve” now that the court has ruled on the disputed legal questions.

Yellow still faces a much smaller pool of withdrawal liability claims from pensions that didn’t receive special financial assistance.

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The 11 MEPPs party to the Friday opinion received more than $40 billion in assistance from the government.

More FreightWaves articles by Todd Maiden

The post Delaware bankruptcy court says Yellow owes pensions, stock drops 90% appeared first on FreightWaves.



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Delaware

Family of Kadir Skinner to sue Wilmington over police killing

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Family of Kadir Skinner to sue Wilmington over police killing


Why Should Delaware Care?
A recent police shooting of a 19-year-old in northeast Wilmington has become one of the city’s highest-profile use-of-force cases in years. A Delaware Department of Justice investigation into the incident is expected to be closely watched as residents look for answers and justice.

The family of Kadir Skinner, the 19-year-old who was fatally shot by Wilmington police last month, announced Tuesday they will seek $25 million from the city in a wrongful death lawsuit.  

The announcement was made during a press conference the family held with their attorneys on the same day that state and city officials released body camera footage from the night Skinner was shot. 

The footage shows a chaotic 28 seconds between the moment the shooting officer leaves his vehicle to chase Skinner, before firing his weapon and handcuffing the wounded teen on the pavement of a Wilmington street. Another three-and-a-half minutes pass after Skinner was shot before officers place him into a patrol car and take him to Wilmington Hospital, where he died. 

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During the press conference, the family’s attorney Harry Daniels referenced that the video also shows a loose dog behind Skinner as the officer begins his pursuit.  

“If they continue to shoot and kill our Black men down in the street as they’re running from a dog. If they do not want to hold those who do it accountable, then we’re gonna try to hold them accountable in their pocketbooks,” Daniels said.

The wrongful death lawsuit has not yet been filed. But the attorney said the family sent the city a notice of a claim on Thursday — a required step before the lawsuit can be filed.

Wilmington officials have said officers chased Skinner after they observed him walking out of a home and pointing a gun at a large crowd of people. The family disputes the claim. The body camera footage does not show the moments prior to the foot chase. 

Chance Lynch, another attorney for the family, said during the press conference that the body camera footage sparks new questions about the city account.   

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“Where was this crowd that he waved a gun [at]? Why didn’t they (the city) mention the pitbull? And when he was running away from the police officer, how was he a threat to that police officer?” Lynch asked.

When reached for comment Thursday, Caroline Klinger, a spokeswoman for Mayor John Carney, said questions about previous statements made by police should be directed to the Wilmington PD. 

“The details of the incident are precisely what is being evaluated through the investigation,” Klinger said. 

Carney did comment on the situation in a Facebook post made before the family’s press conference Thursday. In it, he asserted that body cameras have “limitations” and that the footage from the Skinner shooting “does not capture the totality of the incident.”

About 50 people attended a rally on Sunday, July 12, at Rodney Square that featured a series of speakers condemning the police shooting of Kadir Skinner, | SPOTLIGHT DELAWARE PHOTO BY KARL BAKER

The news of the family’s impending lawsuit comes after the June 24 incident sparked weeks of outcry from community members and elected officials who, until Thursday, had called on authorities to release body camera footage. 

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Community members have also demanded the name of the officer involved, as well as police reform at the local and state level.

Many of those demands were repeated Thursday evening during a rally and march that begin a the site of Skinner’s shooting and ended at the Wilmington Police station downtown.  

Four shots fired

Two hours before the Skinner family’s press conference, the Delaware Department of Justice, city officials and Wilmington police released three body camera videos from officers on the scene the night of the shooting.

The videos show two officers near 24th and Jessup streets exiting their police cruiser before pursuing Skinner on foot. 

One officer fired four gunshots while chasing Skinner. Wilmington officials have said Skinner sustained one gunshot wound to the buttocks.

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The shooting officer then approaches Skinner, who is already on his knees with his hands up, pushes him to the ground, and puts a knee on his back to handcuff him. During that time, the officer tells another officer to “find the gun.”

Skinner is heard saying, “I don’t got nothing.” A crowd then begins to form in the area as Skinner repeatedly says, “I can’t breathe.”

The first time Kadir Skinner is visible in the footage is as he is running down the sidewalk. | SCREENSHOT COURTESY OF DELAWARE DOJ

A separate video from another responding officer shows her near the scene, stopping at a spot and reaching down. She then returns to the immediate scene as sound from her body camera turns on. The shooting officer tells her to “secure the gun.” She responds, “I have it.”

Police previously said they recovered a .45-caliber handgun with an extended magazine but did not say whether Skinner was holding it when he was shot.

The officer who fired the shot, who has yet to be identified, remains on administrative leave, according to police.

In a statement, state and city officials said the investigation into the shooting is still ongoing and noted that the officers involved will be identified once a detailed public report is issued at the end of the investigation. 

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Delaware

Body cam video released of deadly police shooting in Wilmington, Delaware

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Body cam video released of deadly police shooting in Wilmington, Delaware


WILMINGTON, Del. (WPVI) — The family of Kadir Skinner is calling for criminal charges against the police officer who shot the 19-year-old after the release of officer body camera footage that attorneys say contradicts the police account of the incident.

The shooting happened June 24 after 11 p.m. at 24th and Jessup streets.

Calls grow for body cam video in deadly Wilmington police shooting

Body camera video shows an officer drawing and firing his weapon while yelling commands. In the footage, officers can be heard saying, “He’s got a gun,” as they approach Skinner, who is on the ground.

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Skinner repeatedly tells officers he is unarmed and says he cannot breathe.

“I don’t got nothing. I don’t got nothing,” Skinner says in the video.

Footage shows officers handcuffing Skinner and kneeling on him while he continues to say, “I don’t got nothing. I can’t breathe.”

Skinner was shot in the rear.

READ MORE | ‘We need answers’: Family disputes details after man killed in Wilmington police shooting

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A second body camera angle shows a crowd forming as officers instruct people to back up.

Video from a third responding officer appears to show an officer picking something up from the grass and returning toward the crowd and the officers with Skinner.

In the footage, an officer can be heard saying, “Secure the gun,” and the officer wearing the body cam says, “I have it.”

Attorneys for Skinner’s family, along with family members and community supporters, gathered at Shiloh Baptist Church in Wilmington following the release of the video to demand justice.

“Regardless if he had a gun or not, he was still shot in the back, running from police, not having been a threat,” attorney Harry Daniels said.

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SEE ALSO | Family releases witness video after 19-year-old fatally shot by police in Wilmington

Attorney Chance Lynch said the footage showed “an unjustified killing.”

“What we saw and what we witnessed was an unjustified killing,” Lynch said.

Attorneys for the family contend the video disputes the police version of events. Wilmington police previously said Skinner came out of a home armed and waved a gun at a crowd before officers opened fire.

“The video that I saw, I didn’t see a crowd, and I did not see Kadir coming out of a residence. I did not see a crowd, and I did not see Kadir pointing a firearm at a crowd,” Lynch said.

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Attorneys and the family maintain that Skinner was running from a loose dog.

The family also announced a $25 million claim against the city of Wilmington for wrongful death. They are seeking criminal charges against the officer who shot Skinner.

The Delaware Department of Justice is investigating.

Copyright © 2026 WPVI-TV. All Rights Reserved.



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Delaware

Delaware oversight commission debates authority to reject utility rate hikes

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Delaware oversight commission debates authority to reject utility rate hikes


Delmarva Power objects to applying legislation to interim rate

The debate among commissioners over the breadth of their oversight on utility rates comes as the company has pushed back on the group, limiting its interim rate increase to half of its total request, even while it faced criticism from commissioners that it is “cruel” and “tone deaf” for continuing to press for rate hikes.

Delmarva Power, an investor-owned utility, serves 344,000 residential and nonresidential customers in the state. Its parent company, Exelon Corporation, is the nation’s largest regulated electric and gas utility.

Its customers pay a supply and a delivery charge for gas and electricity. The supply of energy comes from PJM Interconnection, a regional grid serving Delaware, Pennsylvania, New Jersey and several other states. Delmarva Power profits through the distribution fee.

Delmarva Power Region President Marcus Beal said they need to file rate hike requests to recoup money it spends on improving and maintaining the infrastructure.

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“Our equipment is extremely expensive, the items that we buy, the transformers, they’re very large, complex things to build,” Beal said. “Even something as simple as a treated pole of a certain size can be very pricey, so we spend a lot of money on the grid itself.”

Under Delaware law, interim rates can be approved seven months after a rate case is filed, while the full petition is being considered by the commission. Prior to the legislation, 100% of the rate request could be implemented. The bill caps interim rates at 50% and allows 75% of the ask to go into effect after 12 months. The bill also puts limits on Delmarva Power’s infrastructure spending.

Delmarva Power spokesperson Matt Ford said the commission overstepped its authority to cut the interim rate as much as they did and the company has argued in its PSC submissions that SB 326 did not apply to the rate increase request filed in December because it had yet to be signed into law. Meyer said he signed the bill Monday.

“Delmarva Power further reserves its objections to the applicability of the legislation, should it become effective, including its impermissible retroactive application,” the utility company said in comments filed Monday afternoon with the commission.

In addition, Delmarva Power has objected to halving $23.2 million in distribution system improvement charges as part of the interim rate commissioners approved. The fee allows utility companies to recover project costs and depreciation between full rate case proceedings.

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“My suggestion is, if you don’t like it, appeal it,” Iorii said.

It’s unclear whether the utility plans to appeal the order. Ford said they were reviewing it and its implications.

Tweedie said he hopes they decide not to appeal.

“If they appeal this, what they are essentially saying is, ‘We want to extract more money from our customers than the commission intended to allow,’” he said.



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