Allied Systems Gets Green Light For $20M DIP Loan

Law360, Wilmington (July 12, 2012, 9:59 PM EDT) -- Car transporter Allied Systems Holdings Inc. won final approval Thursday for $20 million of debtor-in-possession loans in Delaware bankruptcy court after unsecured creditors wrested concessions from DIP lender and insider Yucaipa Cos. LLC.

Yucaipa — a private equity firm that holds a 70 percent stake in Allied and a majority of its secured debt — had been accused in an objection from the unsecured creditors committee of attempting to dominate the bankruptcy case for its own benefit through the DIP terms.

The private equity firm resolved...
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