On Thursday, August 15, Allied Systems completed two days of an auction for its assets at a law office in Wilmington, Delaware. The company (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.
The next step is a hearing at 2 p.m. Thursday, August 22 for the bankruptcy judge to approve the bid. At this hearing, the Teamsters and others will present their objections.
“Based on what we know right now the Teamsters will vigorously object to the sale as a violation of our contract and we expect that other parties will as well, when it comes before the bankruptcy court for approval,” said Roy Gross Teamster Carhaul Division Director, who was present during the auction along with Teamster-retained bankruptcy attorneys. “It’s beyond comprehension that Allied selected this bid, made in the 11th hour with lack of specifics and documentation, over a bid of all cash by a proven operating company like 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.”