Allied Systems Holdings Inc. and 18 subsidiaries, including Allied Automotive Group Inc., Axis Group Inc., and Allied’s Canadian units, on June 10 filed for Chapter 11 bankruptcy protection.
The Decatur, Ga.-based automotive transportation company said its majority lenders pledged to provide up to $20 million in debtor-in-possession financing to support the company’s operations during its voluntary restructuring.
“We believe the financial restructuring will strengthen Allied’s balance sheet and position the company for a long and profitable future,” said Mark J. Gendregske, Allied president and CEO, in a statement.
Allied Holdings Inc. previously filed for Chapter 11 protection in July 2005 and emerged as Allied Systems Holdings Inc. in May 2007. Since then, the company’s sales have been hurt by the reduction in vehicle production and sales due to the global economic crisis that began in 2008. Also, the company said it and its majority lender Yucaipa have been in litigation with certain minority lenders since 2009. Two of those lenders filed involuntary Chapter 11 proceedings against Allied on May 17, 2012.
“After exploring all of our options with respect to the company’s current financial position and the involuntary petitions, it became clear
http://www.bizjournals.com/atlanta/news/2012/06/11/allied-systems-holdings-files-chapter-11.html
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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