Allied Holdings to Be Taken Over by Yucaipa Cos.
Private Firm Will Control 2 of 3 Top Auto-Hauling Carriers
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Auto hauler Allied Holdings will be taken over by the private company Yucaipa Cos. under a bankruptcy exit plan filed jointly by the two firms, Bloomberg reported late Friday.
Leaders of the Teamsters union, representing 3,300 Allied drivers nationwide, approved the deal in spite of a 15% wage cut, saying it’s the best the employees can do, Bloomberg reported.Allied filed for bankruptcy in 2005. “The linchpin to the reorganization of the debtor is an amendment to the collective bargaining agreement,” Allied said in a statement, a bankruptcy court document given to creditors so they can decide whether to support the plan. By taking over Allied, Los Angeles-based Yucaipa, owned by billionaire Ron Burkle, would control 60% to 70% of the U.S. new-car hauling market, Bloomberg reported. In December, it acquired Performance Transportation Services, which had also gone bankrupt. (Click here for previous coverage.)Allied is ranked No. 27 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. Performance Transportation Services is ranked No. 66.Allied is the largest auto hauler in the list, while PTS is the third-largest.
Auto hauler Allied Holdings will be taken over by the private company Yucaipa Cos. under a bankruptcy exit plan filed jointly by the two firms, Bloomberg reported late Friday.
Leaders of the Teamsters union, representing 3,300 Allied drivers nationwide, approved the deal in spite of a 15% wage cut, saying it’s the best the employees can do, Bloomberg reported.Allied filed for bankruptcy in 2005. “The linchpin to the reorganization of the debtor is an amendment to the collective bargaining agreement,” Allied said in a statement, a bankruptcy court document given to creditors so they can decide whether to support the plan. By taking over Allied, Los Angeles-based Yucaipa, owned by billionaire Ron Burkle, would control 60% to 70% of the U.S. new-car hauling market, Bloomberg reported. In December, it acquired Performance Transportation Services, which had also gone bankrupt. (Click here for previous coverage.)Allied is ranked No. 27 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. Performance Transportation Services is ranked No. 66.Allied is the largest auto hauler in the list, while PTS is the third-largest.
