Allied Creditors Look To Regulate Use Of $15M D&O Policy

Law360, Wilmington (May 29, 2013, 4:40 PM EDT) -- Unsecured creditors of private equity-owned Allied Systems Holdings Inc. asked a Delaware bankruptcy judge Tuesday to restrict its board's ability to tap a $15 million directors and officers insurance policy to recoup legal expenses from a related suit, saying unlimited access would drain the car hauler's assets.

The committee of unsecured creditors — which in February brought an adversary complaint against Yucaipa Cos. Ltd., the debtors' private equity owner, and certain Allied board members — does not dispute that individual directors are covered under the policy...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.