Court OKs Allied’s Reorg. Plan

Auto carrier Allied Holdings said Saturday that a bankruptcy court has approved its reorganization plan.

The ruling was made Friday by the U.S. Bankruptcy Court for the Northern District of Georgia, Allied said.

The carrier agreed in February to join Yucaipa Cos. and the Teamsters union in backing a strategy to exit from Chapter 11 bankruptcy,

Allied said it expects the plan to become effective by June 1. Its shareholders will not receive any distributions under the plan. The shares have recently traded on the Pink Sheets.

Allied is ranked No. 27 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.