MEMORANDUM
To:    Yellow Corp. Local Unions (including YRC Freight, Holland, New Penn and Reddaway)

From:  Spencer Dearth, Director, Logistics Division

Date:   October 6, 2026

Re:    Yellow Corporation Bankruptcy Update

TO ALL LOCAL UNIONS HAVING MEMBERS EMPLOYED OR FORMERLY EMPLOYED BY YELLOW CORPORATION AFFILIATES
This Memorandum is an important update to the Yellow Bankruptcy proceedings. Please review this 
memo carefully.
SETTLEMENT AGREED IN PRINCIPLE ON REMAINING CLAIMS

The IBT and Yellow had previously reached agreement to valuate the claim for paid time off at $63.9 
million priority, and $1.9 million general unsecured; and the sick leave claim at $5.7 million 
priority. On October 1, 2026, at a mediation, the Liquidating Trustee on behalf of Yellow agreed to 
recognize the IBT having an additional priority claim of about $15 million on the federal WARN Act, 
$2.19 million additional on the New Jersey WARN Act, $1.2 million for grievances that were pending 
when Yellow shutdown operations, and $1.75 million for unused personal holidays for New York, New 
Jersey, Pennsylvania, and Western Teamsters whose NMFA supplements provided for the payout of 
unused personal holidays. The WARN settlement represents 5 days of damages on the federal WARN Act, 
and 30 days of damages on the New Jersey WARN Act.  The difference is because there are defenses 
available under the federal WARN Act that are not available under the New Jersey WARN Act. The 
Teamsters leadership chose full payment on contract claims and some recovery on the WARN Act over 
years of additional litigation on the WARN Act claims with an uncertain outcome.

Before any distributions are made, the IBT and the Liquidating Trustee must agree to and sign a 
settlement agreement, the parties must file a motion with the Bankruptcy Court to seek approval for 
their settlement, and the Bankruptcy Court must approve the settlement. At this time, we don’t 
expect any parties to object to the settlement between the IBT and the Liquidating

October 6, 2026
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Trustee; although any objections would substantially delay the Liquidating Trustee making payments 
to the IBT membership.

We expect the vast majority of the allowed claims for Teamsters members to be paid at 100%, subject 
to a cap of $22,650 per person. The cap includes $15,150 for priority claims, and
$7,500 for additional employee benefit claims. Because equity holders MFN has now withdrawn its 
objection to plan Confirmation, We would expect the priority and additional employee benefit claims 
that fall within the $22,650 cap to be paid within months after the Bankruptcy Court approves the 
settlement, if no party files an appeal over the Bankruptcy Court’s decision to approve the 
settlement.

We expect there are a small number of Teamsters members whose total claim will exceed the $22,650 
cap. Any amounts in excess of the $22,650 cap will be paid at the same rate as all other general 
unsecured claims, at a rate of less than 20 cents on the dollar. Payments on amounts that exceed 
the $22,650 cap may also be delayed as the Liquidating Trustee may need additional time to 
determine how much can be collected from the Yellow estate and how much is available to be paid to 
holders of general unsecured claims.