Allied Systems Faces Forced Ch. 11 Over $53M PE Default

Law360, New York (May 18, 2012, 4:35 PM EDT) -- Units of private equity firms Black Diamond Capital Partners LLC and Spectrum Investment Partners LP asked the Delaware bankruptcy court Thursday to place Allied Systems Holdings Inc. into involuntary Chapter 11, claiming the transportation company defaulted on $53 million in loan payments.

The involuntary bankruptcy petitions filed by the funds against Allied Systems Holdings and Allied Systems Ltd. state claims of at least $52.8 million for loan defaults by the two companies.

According to the funds' supporting statements, Allied has failed to make payments to its...
To view the full article, register now.