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August 2, 2005 To: LOCAL UNIONS 5, 20, 25, 41, 69, 79, 89, 106, 120, 135, 213, 222, 223, 251, 299, 312, 326, 327, 332, 362, 364, 385, 391, 395, 414, 449, 469, 490, 492, 509, 512, 528, 542, 557, 560, 568, 579, 592, 604, 612, 614, 631, 651, 667, 710, 745, 763, 769, 822, 848, 880, 891, 817, 927, 938, 957, 959, 961, 979 and 984 Re: Allied Holdings, Inc. et al. Case Nos. 05-12515 through 05-12537 Dear Brothers and Sisters: This letter is our First Report to you regarding the above cases. The International Brotherhood of Teamsters has retained our offices to assist you in the Allied Holdings bankruptcy. As you know, Allied filed for Chapter 11 protection the evening of July 31, 2005, in the Northern District of Georgia, Newnan Division. Chapter 11 is the part of the Bankruptcy Code for companies that wish to reorganize. The reorganizing company is known as a “debtor-in-possession” or DIP. Employee paychecks frequently are returned unpaid in a bankruptcy as accounts close and payment is stopped by banks on the checks. The first action of the company was to apply for emergency permission from the court to continue to pay employees’ wages and benefits. We expect that the court will grant these motion. As a result we do not expect any employee paychecks to bounce. We are also attempting to secure a position on the creditors committee in this matter. The creditors committee has an important role in monitoring the progress of the proceedings. There is no deadline yet for filing claims in this matter. We have no indication that the debtor is seeking relief from any of your collective bargaining agreements at this point in time. You should continue to process grievances per your normal procedure and grieve violations of the collective bargaining agreement as they occur. Should you receive any demand for concessions, or any notification referring to “rejection” or “modification” of the contracts, or “Section 1113” of the Bankruptcy Code, refer them to this office immediately. If you have problems with employee paychecks, union dues checks, or the like, please refer them to our offices as well. We will periodically notify you of events in this case as circumstances warrant. Please do not hesitate to call our offices with any questions you may have about the bankruptcy. Very truly yours, PREVIANT, GOLDBERG, UELMEN, GRATZ, MILLER & BRUEGGEMAN, s.c. BY Frederick Perillo cc: Patrick Szymanski, Esq.
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