Allied Creditors Look To Regulate Use Of $15M D&O Policy

Law360, Wilmington (May 29, 2013, 4:40 PM ET) -- Unsecured creditors of private equity-owned Allied Systems Holdings Inc. asked a Delaware bankruptcy judge Tuesday to restrict its board's ability to tap a $15 million directors and officers insurance policy to recoup legal expenses from a related suit, saying unlimited access would drain the car hauler's assets.

The committee of unsecured creditors — which in February brought an adversary complaint against Yucaipa Cos. Ltd., the debtors' private equity owner, and certain Allied board members — does not dispute that individual directors are covered under the policy...
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