Hedge fund MFN Partners is pushing for the establishment of an official committee to represent shareholder interests in logistics company Yellow’s bankruptcy case, according to a report by the Wall Street Journal citing a securities filing.
Boston-based MFN, which holds a roughly 42% stake in Yellow, has submitted a request to the US Justice Department’s bankruptcy division for the appointment an official group of shareholders which, if granted, would allow the shareholder committee to bill its legal fees to Yellow.
MFN has also put forward a candidate to fill one of two vacant positions on the company’s board of directors and intends to present another choice for the second empty seat, according to Yellow.
Yellow ceased operations and filled for bankruptcy earlier this month and is now in the process of selling off its assets, which have reportedly attracted bids high enough to cover the company’s outstanding financial debt.
If Yellow also pays off its other obligations, any excess value could flow to its shareholders, which include MFN as well as the US government.
