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 —...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!