Allied, Yucaipa Want First-Lien Fight Settled In Del.

Law360, Wilmington (November 9, 2012, 9:43 PM EST) -- Bankrupt car hauler Allied Systems Holdings Inc. and private equity firm The Yucaipa Cos. LLC, its largest first-lien holder, fired back in Delaware bankruptcy court Friday against the plan of competing first-lien creditors to settle their long-standing status fight in New York state court.

Atlanta-based Allied's Chapter 11 case has been stalled by the first-lien fight over which creditor has “requisite lender” status, which enables the holder to take action on behalf of the other first-lien creditors. The bankrupt company is seeking to resolve the matter...
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