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Next Court Hearing Scheduled February 26 February 14, 2007 During a hearing today in U.S. Bankruptcy Court, Allied Holdings' current management requested more time for its board to review a reorganization plan filed by the Yucaipa Cos. that would protect Teamster members' pensions, health and welfare benefits and preserve the union contract. As a result of Allied's request for more time, the court extended what is referred to as the "period of exclusivity." A debtor in Chapter 11 has the exclusive right to file a plan of reorganization for the first 120 days of its bankruptcy. Thereafter, unless the period of exclusivity is extended by the court, other parties may file reorganization plans. In the Allied case, the court has extended exclusivity several times, and did so again today. The court extended exclusivity until February 26, when another hearing is scheduled to determine if the court will extend exclusivity further. "We still have not heard from Allied management whether its Board of Directors will approve the Yucaipa plan or not," said Fred Zuckerman, Director of the Teamsters Carhaul Division. "Today's decision is just one more delay in a very long process. However, we will keep our members informed of any developments." Between now and February 26, Allied's Board will decide whether to support the Yucaipa plan or continue with the motion to nullify the Teamster contract. If it chooses the Yucaipa plan, then the Teamsters Union and Yucaipa, and possibly others, will support that decision. If Allied chooses to oppose the plan and to continue its attack on the union contract, the Teamsters, and possibly Yucaipa and others, will oppose extension of exclusivity, in an effort to pave the way for consideration of the Yucaipa plan by all groups. If the latter occurs, Yucaipa and the Teamsters will ask the court to approve Yucaipa's plan. If the court approves the plan, members will be asked to ratify the Yucaipa plan within 45 days. "I will be visiting local unions soon to provide more details about the Yucaipa plan, and I'm confident that members will see that this is the responsible path," Zuckerman said. "The Yucaipa plan will protect our members' interests and make sure their futures remain secure." The three-year plan from Yucaipa would adopt economic concessions far less drastic than proposed by Allied's present management. It will preserve members' pensions and health and welfare benefits, with no changes to work rules or contract language. The proposal also calls for the appointment of a new board of directors and CEO on the effective date of the plan. On February 2, Allied filed a motion in bankruptcy court seeking to nullify the contract and asking for a reduction of $65 million per year for five years for a total of $325 million from its Teamster employees. Wage concessions in the Yucaipa plan would be 15 percent total over three years, not to exceed $35 million per year. All those funds would be used to purchase new equipment to be used by Teamsters at Allied.
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