Home New Cases Yucaipa’s General Partner is Liable For Judgment Alleges ASHINC Corp Trustee

Yucaipa’s General Partner is Liable For Judgment Alleges ASHINC Corp Trustee

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October 6, 2021, District of Delaware – Plaintiff Trustee Catherine E. Youngman, for ASHINC Corp. (formerly known as Allied Systems Holdings, Inc.) and related Debtors charges Yucaipa American Alliance Fund I and 29 other defendants with a lawsuit for alleged actual and constructive fraud. 

By way of background, the Trustee is a judgment creditor against Yucaipa American Alliance Fund I, L.P. and Yucaipa American Alliance (Parallel) Fund I, L.P. (together “Yucaipa”) for $132,431,957.00, plus accruing post-judgment interest, according to a judgment entered by the United States Bankruptcy Court for the District of Delaware in two related adversary proceedings: (i) Del. Bankr. Adv. 13-50530 and (ii) Del Bankr. Adv. Adv. 14-50947.

ASHINC Corp. is a holding company that transports vehicles from manufacturing plants, railway distribution points, ports, and auctions to auto dealers and car rental companies. Allegedly, the Defendants are sophisticated commercial parties who elected to invest in Yucaipa under partnership agreements. The agreements’ stated objective was to seek the realization of substantial capital gains from private equity and equity-like transactions primarily in the range of $250 million to $1 billion.

By way of this action, the Trustee seeks a declaration that Yucaipa’s general partner – Yucaipa American Fund I, LLC – is liable for the judgment and any subsequent judgments rendered in favor of the Trustee against Yucaipa in the adversary proceedings. In addition, the Trustee alleges that Yucaipa’s general partner is also liable for the debts of Yucaipa and seeks avoidance and recovery of the transfers necessary to satisfy the judgment.

In re ASHINC Corporation, et al., Case No. 12-11564 (CSS)

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