Del. Court Awards $57.4M To Car-Hauler's Ch. 11 Estate

Law360 (May 6, 2021, 2:23 PM EDT) -- A Chapter 11 trustee has won a fight in Delaware for a $57.4 million breach of contract recovery benefiting the estate of bankrupt Allied Systems Holdings Inc., with simple interest from 2009 under governing New York law nearly doubling the potential award to more than $110 million.

Judge Christopher S. Sontchi's decision, filed late Tuesday, went against Yucaipa Cos. LLC and its affiliate on the breach of contract claim, made by the former Georgia-based car-hauler, and based on a payment due in August 2009.

"The court understands that a cash contribution of $57.4 million might not have changed Allied's ultimate fate —...

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