Allied To Support Union, Equity Firm's Plan

Law360, New York (February 28, 2007, 12:00 AM EST) -- When bankrupt auto hauler Allied Holdings Inc. couldn’t reach an agreement with its unionized workers on cost reductions, a private equity firm stepped in and negotiated a restructuring plan with the union. Allied filed court papers on Friday agreeing to become a co-proponent of the plan.

In a six-page stipulation signed by attorneys for both Allied and Yucaipa Cos.—which owns two-thirds of Allied’s unsecured notes and is estimated to hold about half of Allied unsecured claims—Yucaipa agreed to support Allied’s recent bid for an extension of...
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