Allied Wins $33.5M Replacement Loan Over Yucaipa Protest

Law360, Wilmington (June 19, 2013, 7:59 PM EDT) -- A Delaware bankruptcy judge on Wednesday approved a $33.5 million replacement post-petition loan and sale plan for Allied Systems Holdings Inc. over the objection of original lender Yucaipa Cos. Ltd., which had argued that the terms gave the replacement private equity lenders too much leverage.

Yucaipa had put forward alternative proposals hours before oral arguments over the matter began Wednesday, but U.S. Bankruptcy Judge Christopher S. Sontchi gave the nod to the replacement debtor-in-possession financing facility from Black Diamond Capital Management LLC and Spectrum Investment Partners...
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