Yucaipa Settles Allied Creditors' Suit In $58M Deal

Law360, Wilmington (July 29, 2013, 5:47 PM EDT) -- Allied Systems Holdings Inc.'s unsecured creditors have resolved their suit against private equity owner The Yucaipa Cos. LLC, filing a settlement motion in Delaware bankruptcy court Friday that would give the troubled car hauler $17 million in cash and forgive $41 million of its debt.

The deal represents an arms' length compromise reached through court-ordered mediation and subsequent negotiations, according to the joint motion in support, and approval stands to benefit both Allied and its creditors.

Brought as an adversary proceeding by the official committee of...
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