Allied Creditors Get OK To Pursue $57M Suit Against Yucaipa

Law360, Wilmington (March 21, 2013, 5:52 PM EDT) -- A Delaware bankruptcy judge on Thursday gave unsecured creditors of Allied Systems Holdings Inc. the green light to pursue a suit that seeks to recover $57 million from private equity owner Yucaipa Cos. Ltd. and subordinate the firm's claims to those of other lenders.

Both the official committee of unsecured creditors and a contingent of certain first-lien lenders had launched similar adversary complaints accusing Yucaipa of highjacking the car hauler's secured debt to advance its own interests, and by granting standing to the committee U.S. Bankruptcy...
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.