Court Approves Allied’s Bankruptcy Financing Plan

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uto transporter Allied Holdings, won court approval to borrow as much as $230 million to pay expenses while it reorganizes in bankruptcy, Bloomberg reported late Wednesday.

General Electric Capital Corp., Morgan Stanley Senior Funding and Marathon Structured Finance Fund will together provide a $130 million revolving credit line and $100 million in two term loans, Allied said in court papers, Bloomberg reported.

The financing is “vital to avoid irreparable harm to [Allied’s] business,” U.S. Bankruptcy Judge W. Homer Drake in Atlanta said in his ruling, Bloomberg reported.

Allied, based in Decatur, Ga., already has used $186 million to repay creditors Ableco Finance LLC and Wells Fargo Foothill. Drake authorized Allied to use as much as $1.5 million to pay lawyers and other advisers, Bloomberg said.

Allied, which is ranked No. 25 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers, filed for Chapter 11 bankruptcy Aug. 1. GE said Aug. 3 it would provide debtor financing to the company.

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