Allied Holdings anticipates financial covenant violations in 2Q05 or after

By Sara Rosenberg

New York, May 23 - Allied Holdings Inc. anticipates being unable to comply with certain financial covenants in the second quarter of 2005 or onwards, according to a 10-Q filed Monday with the Securities and Exchange Commission.

The company currently has a revolver that is used to cover seasonal working capital needs and a term loan C obtained in April for additional liquidity.

Because of the added liquidity provided by the new term loan, the company expects to be able to meet its liquidity needs through at least the next 12 months, assuming it is granted lender permission to use the term loan for these seasonal working capital needs, the filing added.

Allied Holdings is a Decatur, Ga.-based automobile-hauling company.

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