Allied Holdings Eyes New DIP From Hungry Investor

Law360, New York (June 29, 2006, 12:00 AM EDT) -- Insolvent Allied Holdings Inc. has asked a bankruptcy court to approve a $130 million amended debtor-in-possession loan so the auto hauler can pay off earlier debt and maintain operations.

If the motion is approved, it will clear the way for investment manager GSO Capital Partners LP and equity firm Yucaipa Cos. to infuse Allied with $100 million and $30 million, respectively.

According to court filings, Yucaipa recently purchased more than two-thirds of Allied’s outstanding 8 5/8% senior unsecured notes due 2007.

Yucaipa is also a significant...
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