NEW YORK, Sept. 8, 2016 /PRNewswire/ -- Black Diamond Capital Management, L.L.C. ("Black Diamond") and Spectrum Group Management, L.L.C. ("Spectrum") recently received a favorable ruling in their long running dispute with Yucaipa Cos. Ltd ("Yucaipa") in connection with their investment in Allied Systems Holdings Inc. In a written opinion last week, the Honorable Judge Sue L. Robinson of the U.S. District Court in Delaware granted their motion to dismiss a lawsuit asserting claims against the firms under the Racketeer Influenced and Corrupt Organization Act ("RICO") by Yucaipa, finding there was "no plausible basis" for the claims.
Dismissal of the lawsuit is the latest in a series of favorable court rulings for Black Diamond and Spectrum in their litigation with Yucaipa in connection with the Allied Systems Holdings Inc. bankruptcy case. Previously, courts have ruled in favor of Black Diamond and Spectrum on significant motions in the litigation at least half a dozen times, including determining and later upholding Black Diamond's and Spectrum's primacy over Yucaipa as so-called requisite lenders, under certain financing agreements provided to Allied Systems.
"We appreciate the Court's careful review of this matter and are pleased to have these meritless claims dismissed," said Robert J. Ward of Schulte Roth & Zabel LLP. "We now look forward to pursuing vigorously the substantial claims that we and Allied's unsecured creditors' committee have asserted against Yucaipa for its actions involving Allied."
Black Diamond and Spectrum are represented by Adam G. Landis and Kerri K. Mumford of Landis Rath & Cobb LLP, and Adam C. Harris, Robert J. Ward and David M. Hillman of Schulte Roth & Zabel LLP.
About Black Diamond Capital Management, L.L.C.
Black Diamond is a leading alternative asset management firm with over $8 billion in assets under management across three complementary investment platforms: Control Distressed/Private Equity Funds, a Hedge Fund and CLOs and other structured vehicles.
About Spectrum Group Management, L.L.C.
Spectrum Group Management is an alternative asset management firm that focuses on event driven investing in the distressed, special situations, and asset-based credit markets. Spectrum has developed an extensive network for originating "off the run" investment opportunities. Its investment portfolios target low volatility, minimal correlation and attractive risk-adjusted returns throughout the economic cycle.
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SOURCE Black Diamond Capital Management