Bankruptcy Judge Blasts Allied's Proposed $33M Loan

Law360, Wilmington (May 31, 2013, 6:39 PM ET) -- A Delaware bankruptcy judge on Friday refused to consider Allied Systems Holdings Inc.'s request for $33.5 million in replacement post-petition financing from two private equity lenders, calling the proposal “dead on arrival,” and chastising the parties for bringing him a motion that fell so short.

U.S. Bankruptcy Judge Christopher S. Sontchi said he agreed with many objections lodged by the official committee of unsecured creditors that argued the refinancing terms were much too expensive and part of an effort by lenders Black Diamond Capital Management LLC...
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