Allied Creditors Get OK To Pursue $57M Suit Against Yucaipa

Law360, Wilmington (March 21, 2013, 5:52 PM ET) -- A Delaware bankruptcy judge on Thursday gave unsecured creditors of Allied Systems Holdings Inc. the green light to pursue a suit that seeks to recover $57 million from private equity owner Yucaipa Cos. Ltd. and subordinate the firm's claims to those of other lenders.

Both the official committee of unsecured creditors and a contingent of certain first-lien lenders had launched similar adversary complaints accusing Yucaipa of highjacking the car hauler's secured debt to advance its own interests, and by granting standing to the committee U.S. Bankruptcy...
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