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IN THE UNITED STATES BANKRUPTCY COURT
                                DISTRICT OF DELAWARE

In re:                                                  Chapter 11

ALLIED SYSTEMS HOLDINGS, INC.,                          Case No. 12-11564 (CSS)

                         Alleged Debtor.                Re: Docket No. 11



In re:                                                  Chapter 11

ALLIED SYSTEMS, LTD. (L.P.),                            Case No. 12-11565 (CSS)

                         Alleged Debtor.                Re: Docket No. 11




   ALLEGED DEBTORS' RESPONSE TO PETITIONING CREDITORS' MOTION
    PURSUANT TO DEL. BANKR. L.R. 9006-l(e) FOR AN ORDER SHORTENING
    TIME FOR NOTICE OF THE HEARING TO CONSIDER THE PETITIONING
   CREDITORS' MOTION TO FILE REDACTED VERSIONS OF CONFIDENTIAL
     PLEADINGS AND TO FILE CERTAIN EXHIBITS THERETO UNDER SEAL

         COME NOW the Alleged Debtors and file this response to the Petitioning Creditors'

Motion Pursuant to Del Bankr. L.R. 9006-1 (e) for an Order Shortening Time for Notice of the

Hearing to Consider the Petitioning Creditors' Motion to File Redacted Versions of Confidential

Pleadings and to File Certain Exhibits thereto under Seal [Docket No. 11 in both Case No. 12-

11564 (CSS) and Case No. 12-11565 (CSS)], filed May 17, 2012 (the "Motion to Shorten Time

for Redaction and Sealing Motion "). In making this response the Alleged Debtors do not waive

their request that venue of this case be transferred to the United States Bankruptcy Court for the

Northern District of Georgia, where their earlier Chapter 11 Cases are pending

                                              RESPONSE

         1.        The Alleged Debtors have no objection to the Motion to Shorten Time for

Redaction and Sealing Motion to the extent that the relief sought therein is to shorten the time



RLFI 6047142v. I
only to the extent, if any, that the hearing time is shortened for the Expedited Motion of

Petitioning Creditors for the Appointment of a Trustee Pursuant to 11 USC. §§ 105(a),

1104(a)(l) and 1104(a)(2), [Docket No. l3 in both Case No. 12-11564 (CSS) and Case No. 12-

11565 (CSS)] filed May 17,2012 (the "Trustee Motion"). 1

         2.        The redactions in the Trustee Motion and in the Affidavit of Richard Ehrlich in

Support of Motion for the Appointment of a Chapter 11 Trustee, [Docket No. 15 in both Case

No. 12-11564 (CSS) and Case No. 12-11565 (CSS)], filed May 17, 2012, relate to the Alleged

Debtors' financial information. Similarly, the Exhibits that the Petitioning Creditors proposed to

file under seal are documents created by Alleged Debtors or Yucaipa. As this court has noted,

"[c]onfidential information is information which would result in an 'unfair advantage to

competitors by providing them information as to the commercial operations of the debtor."' In re

A !terra Healthcare Corp., 353 B.R. 66 (Bankr. D. Del2006).

         3.        However, it should be clear that the Petitioning Creditors' Motion to File

Redacted Versions of Confidential Pleadings and to File Certain Exhibits Thereto under Seal

[Docket No. 10 in both Case No. 12-11564 (CSS) and Case No. 12-11565 (CSS)] (the

"Redaction and Sealing Motion"), should not be granted to the extent that it prevents the Alleged

Debtors or its major shareholders from making the redacted or sealed information available to

various parties in order to promote the Alleged Debtors' interests.                        This is because the


          The Motion to Shorten Time seeks a shortening of time with respect to the Petitioning Creditors' Motion to
File Redacted Versions of Confidential Pleadings and to File Certain Exhibits Thereto under Seal [Docket No. 10 in
both Case No. 12-11564 (CSS) and Case No. 12-11565 (CSS)] (the "Redaction and Sealing Motion"). The
Redaction and Sealing Motion addresses statements and exhibits relate to hearing which the Petitioning Creditors
seek with respect to Expedited Motion of Petitioning Creditors for the Appointment of a Trustee Pursuant to II
U.S. C. §§ I05(a), II04(a)(I) and Il04(a)(2), [Docket No. 13] filed May 17, 2012 (the "Trustee Motion"). With
regard to the timing of the Trustee Motion, the Petitioning Creditors' have sought a shortening of the time by filing
the Petitioning Creditors' Motion Pursuant to Del. Bankr. L. R. 9006-I(e)for an Order Shortening Time for Notice
of the Hearing to Consider the Expedited Motion of Petitioning Creditors for the Appointment of a Trustee pursuant
to 11 U.S. C.§§ 105(a), l/04{a)(I) and 1104(a)(2) [Docket No. 12 in both Case No. 12-11564 (CSS) and Case No.
12-11565 (CSS)], filed May 17, 2012. ("Motion to Shorten Time for Trustee Motion")


                                                         2
RLFI 6047142v. 1
confidential information proposed to be protected is the confidential information of the Alleged

Debtors and its major shareholders. It is not the confidential information of the Petitioning

Creditors except in the sense that they are bound not to disclose it.        Accordingly, while the

information is properly filed under seal, the Alleged Debtors and/or Yucaipa, as the case may be,

should retain sole discretion regarding whether and when to disclose the information to the

public or confidentially to other parties-in-interest.

Dated: May 21, 2012
       Wilmington, Delaware                     Respectfully submitted,
                                                                      ....


                                                Mark D. C lins (No. 2981)
                                                Christo er M. Samis (No. 4909)
                                                RICHARDS, LAYTON & FINGER, P.A.
                                                One Rodney Square
                                                920 North King Street
                                                Wilmington, Delaware 1980 1
                                                Telephone: (302) 651-7700
                                                Facsimile: (302) 651-7701
                                                E-mail: collins@rlf.com
                                                E-mail: samis@rlf.com

                                               -and-

                                               Jeffrey W. Kelley (GA Bar No. 412296)
                                               Ezra H. Cohen (GA Bar No. 173800)
                                               TROUTMAN SANDERS LLP
                                               Bank of America Plaza
                                               600 Peachtree Street, Suite 5200
                                               Atlanta, Georgia 30308-2216
                                               Telephone No.:    (404) 885-3000
                                               Facsimile No.:    (404) 885-3900
                                               E-Mail: jeffrey.kelley@troutmansanders.com
                                               E-Mail: ezra.cohen@troutmansanders.com

                                               Counsel for Alleged Debtors




                                                   3
RLFI 6047142v. I
CERTIFICATE OF SERVICE

          I, Christopher M. Samis, hereby certify that a true and correct copy of the foregoing

Alleged Debtors ' Response to Petitioning Creditors ' Motion Pursuant to Del. Bankr. L.R. 9006-

I (e) for an Order Shortening Time for Notice of the Hearing to Consider the Petitioning

Creditors ' Motion to File Redacted Versions of Confidential Pleadings and to File Certain

Exhibits Thereto Under Seal was served upon all parties in interest, by first class mail and/or

hand delivery on May 21 , 2012, at the following addresses:


BDCM Opportunity Fund II, LP                       United States Trustee
One Sound Shore Drive                              844 King Street, Room 2207
Suite 200                                          Lockbox #35
Greenwich, CT 06830                                Wilmington, DE 19899-0035

Black Diamond CLO 2005-1 Adviser L.L.C.            Adam G. Landis, Esq.
One Sound Shore Drive                              Kerri K. Mumford, Esq.
Suite 200                                          Landis Rath & Cobb LLP
Greenwich, CT 06830                                91 9 Market Street
                                                   Suite 1800
Spectrum Investment Partners LP                    Wilmington, DE 19801
1250 Broadway
19th Floor                                         Counsel to Petitioning Creditors
New York, NY 10001




RLFl 6047 142v. I

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10000000034

  • 1. IN THE UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Chapter 11 ALLIED SYSTEMS HOLDINGS, INC., Case No. 12-11564 (CSS) Alleged Debtor. Re: Docket No. 11 In re: Chapter 11 ALLIED SYSTEMS, LTD. (L.P.), Case No. 12-11565 (CSS) Alleged Debtor. Re: Docket No. 11 ALLEGED DEBTORS' RESPONSE TO PETITIONING CREDITORS' MOTION PURSUANT TO DEL. BANKR. L.R. 9006-l(e) FOR AN ORDER SHORTENING TIME FOR NOTICE OF THE HEARING TO CONSIDER THE PETITIONING CREDITORS' MOTION TO FILE REDACTED VERSIONS OF CONFIDENTIAL PLEADINGS AND TO FILE CERTAIN EXHIBITS THERETO UNDER SEAL COME NOW the Alleged Debtors and file this response to the Petitioning Creditors' Motion Pursuant to Del Bankr. L.R. 9006-1 (e) for an Order Shortening Time for Notice of the Hearing to Consider the Petitioning Creditors' Motion to File Redacted Versions of Confidential Pleadings and to File Certain Exhibits thereto under Seal [Docket No. 11 in both Case No. 12- 11564 (CSS) and Case No. 12-11565 (CSS)], filed May 17, 2012 (the "Motion to Shorten Time for Redaction and Sealing Motion "). In making this response the Alleged Debtors do not waive their request that venue of this case be transferred to the United States Bankruptcy Court for the Northern District of Georgia, where their earlier Chapter 11 Cases are pending RESPONSE 1. The Alleged Debtors have no objection to the Motion to Shorten Time for Redaction and Sealing Motion to the extent that the relief sought therein is to shorten the time RLFI 6047142v. I
  • 2. only to the extent, if any, that the hearing time is shortened for the Expedited Motion of Petitioning Creditors for the Appointment of a Trustee Pursuant to 11 USC. §§ 105(a), 1104(a)(l) and 1104(a)(2), [Docket No. l3 in both Case No. 12-11564 (CSS) and Case No. 12- 11565 (CSS)] filed May 17,2012 (the "Trustee Motion"). 1 2. The redactions in the Trustee Motion and in the Affidavit of Richard Ehrlich in Support of Motion for the Appointment of a Chapter 11 Trustee, [Docket No. 15 in both Case No. 12-11564 (CSS) and Case No. 12-11565 (CSS)], filed May 17, 2012, relate to the Alleged Debtors' financial information. Similarly, the Exhibits that the Petitioning Creditors proposed to file under seal are documents created by Alleged Debtors or Yucaipa. As this court has noted, "[c]onfidential information is information which would result in an 'unfair advantage to competitors by providing them information as to the commercial operations of the debtor."' In re A !terra Healthcare Corp., 353 B.R. 66 (Bankr. D. Del2006). 3. However, it should be clear that the Petitioning Creditors' Motion to File Redacted Versions of Confidential Pleadings and to File Certain Exhibits Thereto under Seal [Docket No. 10 in both Case No. 12-11564 (CSS) and Case No. 12-11565 (CSS)] (the "Redaction and Sealing Motion"), should not be granted to the extent that it prevents the Alleged Debtors or its major shareholders from making the redacted or sealed information available to various parties in order to promote the Alleged Debtors' interests. This is because the The Motion to Shorten Time seeks a shortening of time with respect to the Petitioning Creditors' Motion to File Redacted Versions of Confidential Pleadings and to File Certain Exhibits Thereto under Seal [Docket No. 10 in both Case No. 12-11564 (CSS) and Case No. 12-11565 (CSS)] (the "Redaction and Sealing Motion"). The Redaction and Sealing Motion addresses statements and exhibits relate to hearing which the Petitioning Creditors seek with respect to Expedited Motion of Petitioning Creditors for the Appointment of a Trustee Pursuant to II U.S. C. §§ I05(a), II04(a)(I) and Il04(a)(2), [Docket No. 13] filed May 17, 2012 (the "Trustee Motion"). With regard to the timing of the Trustee Motion, the Petitioning Creditors' have sought a shortening of the time by filing the Petitioning Creditors' Motion Pursuant to Del. Bankr. L. R. 9006-I(e)for an Order Shortening Time for Notice of the Hearing to Consider the Expedited Motion of Petitioning Creditors for the Appointment of a Trustee pursuant to 11 U.S. C.§§ 105(a), l/04{a)(I) and 1104(a)(2) [Docket No. 12 in both Case No. 12-11564 (CSS) and Case No. 12-11565 (CSS)], filed May 17, 2012. ("Motion to Shorten Time for Trustee Motion") 2 RLFI 6047142v. 1
  • 3. confidential information proposed to be protected is the confidential information of the Alleged Debtors and its major shareholders. It is not the confidential information of the Petitioning Creditors except in the sense that they are bound not to disclose it. Accordingly, while the information is properly filed under seal, the Alleged Debtors and/or Yucaipa, as the case may be, should retain sole discretion regarding whether and when to disclose the information to the public or confidentially to other parties-in-interest. Dated: May 21, 2012 Wilmington, Delaware Respectfully submitted, .... Mark D. C lins (No. 2981) Christo er M. Samis (No. 4909) RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, Delaware 1980 1 Telephone: (302) 651-7700 Facsimile: (302) 651-7701 E-mail: collins@rlf.com E-mail: samis@rlf.com -and- Jeffrey W. Kelley (GA Bar No. 412296) Ezra H. Cohen (GA Bar No. 173800) TROUTMAN SANDERS LLP Bank of America Plaza 600 Peachtree Street, Suite 5200 Atlanta, Georgia 30308-2216 Telephone No.: (404) 885-3000 Facsimile No.: (404) 885-3900 E-Mail: jeffrey.kelley@troutmansanders.com E-Mail: ezra.cohen@troutmansanders.com Counsel for Alleged Debtors 3 RLFI 6047142v. I
  • 4. CERTIFICATE OF SERVICE I, Christopher M. Samis, hereby certify that a true and correct copy of the foregoing Alleged Debtors ' Response to Petitioning Creditors ' Motion Pursuant to Del. Bankr. L.R. 9006- I (e) for an Order Shortening Time for Notice of the Hearing to Consider the Petitioning Creditors ' Motion to File Redacted Versions of Confidential Pleadings and to File Certain Exhibits Thereto Under Seal was served upon all parties in interest, by first class mail and/or hand delivery on May 21 , 2012, at the following addresses: BDCM Opportunity Fund II, LP United States Trustee One Sound Shore Drive 844 King Street, Room 2207 Suite 200 Lockbox #35 Greenwich, CT 06830 Wilmington, DE 19899-0035 Black Diamond CLO 2005-1 Adviser L.L.C. Adam G. Landis, Esq. One Sound Shore Drive Kerri K. Mumford, Esq. Suite 200 Landis Rath & Cobb LLP Greenwich, CT 06830 91 9 Market Street Suite 1800 Spectrum Investment Partners LP Wilmington, DE 19801 1250 Broadway 19th Floor Counsel to Petitioning Creditors New York, NY 10001 RLFl 6047 142v. I