Allied Systems seeks exclusivity extension to develop exit strategy

By Caroline Salls

Pittsburgh, June 4 - Allied Systems Holdings, Inc. requested an extension of its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend its exclusive filing period through Sept. 4 from June 6 and the solicitation period through Nov. 4 from Aug. 5.

According to the motion, the company's motions for approval of a sale of substantially all of its assets and for replacement debtor-in-possession financing have met with substantial objections from lenders and Allied's official committee of unsecured creditors.

Allied said it is in negotiations, including mediation, to address the objections and "develop a way forward."

The company said the requested extension will allow it to develop an exit strategy that is consensual or that can overcome the objections.

Allied Systems is a Decatur, Ga.-based distributor of new and used vehicles. The company filed for bankruptcy on June 11, 2012 under Chapter 11 case number 12-11564.

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