Hedge Fund Tries to Force Allied Bankruptcy

Peg Brickley
Dow Jones, Daily Bankruptcy Review
May 18, 2012

Hedge funds owed nearly $53 million have moved to push Allied Systems Holdings Inc. into an involuntary bankruptcy case, a remedy for what they said are improper moves by owner Yucaipa Cos.

Affiliates of Black Diamond Capital Management, LLC and Spectrum Investment Partners LP asked the U.S. Bankruptcy Court in Wilmington, Del., to move promptly to appoint a trustee to run the company on the alleged grounds it is being "grossly mismanaged."

Atlanta's Allied Systems Holdings specializes in the delivery of new vehicles from car manufacturers to dealerships. John Blount, chief administrative officer and general counsel of the company, Friday said "rogue lenders" were behind the involuntary bankruptcy petition, which had its roots in a running legal battle between the hedge funds and Yucaipa. Most lenders are supportive of the company, and it has adequate liquidity to continue business as usual, Blount said.

Click here to view the rest of this report.

Get Advice Join TDU Donate

Recent News

Central States Financials -- Help is on the Way

As of June 30, 2021, the Central States Pension Fund had $9.3 billion in assets, which is down $1.1 billion from the beginning of 2021. This information is from the Fund’s Financial and Analytical Report for the second quarter, which was just obtained by Teamsters for a Democratic Union.

Rome Aloise Awaits the Verdict

Rome Aloise, International VP and the architect of the Vairma-Herrera Slate, is awaiting a final ruling from Judge Barbara Jones on his future relationship to the Teamsters Union.

View More News Posts