Allied Creditors Move To Bury Owner Yucaipa's Claims

Law360, Wilmington (January 25, 2013, 10:26 PM ET) -- Creditors of Allied Systems Holdings Inc. launched an adversary complaint Friday in Delaware bankruptcy court seeking to subordinate the claims of the debtor's private equity owner Yucaipa Cos. Ltd. to those of other lenders and recover damages from Yucaipa's billionaire head Ron Burkle, among others.

The move by certain first-lien lenders — units of PE firms Black Diamond Capital Partners LLC and Spectrum Investment Partners LP — represents the latest round in their fight with Yucaipa over the debt and the fate of the insolvent car...
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