A hearing before the U.S. Bankruptcy Court in the Allied Systems’ bankruptcy case that was scheduled for Thursday, August 22 has been postponed by the court to noon Tuesday, September 10.
Earlier this month, following an auction of its assets, Allied declared the winning bid to an acquisition company formed by Black Diamond/Spectrum, over a bid by Jack Cooper Transport, whose employees are represented by the Teamsters.
The Committee of Unsecured Creditors, Yucaipa, and the Teamsters National Automobile Transporters Industry Negotiating Committee (TNATINC), objected to the selection of the Black Diamond/Spectrum Acquisition Company as the winner. The basis for the objections includes various contract violations, including violations of the National Master Automobile Transporters Agreement (NMATA) between Allied and the Teamsters, in addition to a lack of specifics and commitments contained in their bid.
At the September 10 hearing, the bankruptcy judge will consider approving the bid. The Teamsters and other groups will present their objections.
“We will use this additional time to bolster our case against this sale,” said Roy Gross Teamster Carhaul Division Director, who was present during the auction along with Teamster-retained bankruptcy attorneys. “This sale is a violation of our contract and it is outrageous that Allied selected this bid. The decision was made in the 11th hour and it contains no specifics or documentation. Unbelievably, it won over a bid of all cash by a proven company, Jack Cooper.”
The Teamsters Union will keep Allied members informed of all developments as they occur. Visit www.teamster.org and click on the Top Issue button “Allied Systems Bankruptcy.”