$57M Suit Says Yucaipa Schemed To Take Control Of Allied

Law360, New York (February 4, 2013, 7:35 PM EST) -- Unsecured creditors of Allied Systems Holdings Inc. launched a $57 million adversary complaint Friday seeking to subordinate the claims of Allied's private equity owner Yucaipa Cos. Ltd., the latest salvo in a dispute over Yucaipa’s alleged scheme to wrest control of the company from creditors.

Allied’s official committee of unsecured creditors is accusing Yucaipa of taking control of the company’s outstanding secured debt before its bankruptcy as part of a scheme to reduce the power of other company stakeholders.

“Through its manipulative scheme, Yucaipa gave itself...
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