A $319 million claim against Con-way arising from the bankruptcy of Consolidated Freightways Corp. and its withdrawal from the Central States pension fund was settled for $8 million.
In August 2008, Outsourced Logistics reported that the Central States pension fund had assessed a $319 million withdrawal liability against CF and had contacted Con-way and asked to discuss the matter.
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Con-way then filed an arbitration demand and a federal lawsuit asking the court for a quick summary judgment that Con-way was not liable for CF's unpaid withdrawal liability.
CF had closed suddenly in September 2002 after its earlier spin off from the current Con-way.
Con-way said, in addition to the cash payment of $8 million, it was assigning future proceeds from the CF bankruptcy process to Central States. Con-way, however, will retain amounts it has already received.
“The agreement also provides for the release by Central States of all claims against Con-way related to contributions to any Central States pension or to withdrawal liability, and for the extinguishment of the $662 million withdrawal liability assessment made by Central States against Con-way,” said a Con-way statement. In return, Con-way agreed to drop its federal lawsuit and arbitration demand.
Con-way stressed the settlement agreement does not constitute an admission of liability by Con-way.
