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Allied Gains Court Approval for $315 Million Bankruptcy Loan
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A bankruptcy court approved auto hauler Allied Holdings' motion to borrow as much as $315 million to help exit from bankruptcy, Bloomberg reported.
The financing from Yucaipa Cos. was approved by U.S. Bankruptcy Judge C. Ray Mullins in Atlanta on Tuesday, over the objections from some Allied investors, Bloomberg said.Mullins rejected their claim that cheaper financing was available from an affiliate of shareholder Sopris Capital Advisors, Bloomberg reported.Allied agreed last month to join Yucaipa and the Teamsters union in backing an exit plan that would cut wages for three years to save $35 million.Teamsters officials said they would face deeper cuts without Yucaipa, Bloomberg reported.Allied, ranked No. 27 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers, is the largest U.S. auto hauler.(Click here for previous coverage.)
