IN THE UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE

) ) )
)

In re: ALLIED SYSTEMS HOLDINGS, INC. et al., 1 Debtors.

Chapter 11 Case No. 12 -11564 (CSS) (Jointly Administered)

Ref. No. 574

__________________________________ )
ALLIED SYSTEMS HOLDINGS, INC. Plaintiff, v.
) ) ) ) ) )

) ) )

Adversary Proceeding No.: 12-50947 (CSS)

AMERICAN MONEY MANAGEMENT CORP., et ) al, )

_______________________________ )
PETITIONING CREDITORS' MOTION PURSUANT TO DEL. BANKR. L.R. 9006-l(e) FOR AN ORDER SHORTENING TIME FOR NOTICE OF THE HEARING TO CONSIDER PETITIONING CREDITORS' CROSS-MOTION FOR ABSTENTION PURSUANT TO 28 U.S.C. 1334(C) BDCM Opportunity Fund II, LP, Black Diamond CLO 2005-1 Ltd. and Spectrum Investment Partners, L.P. (collectively, the "Petitioning Creditors"), by their undersigned counsel, respectfully submit this motion (the "Motion to Shorten") for an order Shortening Notice on the Petitioning Creditors' Petitioning Creditors' Cross-Motion for Abstention Pursuant

Defendants.

) )

Ref. No. 12

The Debtors in these cases, along with the federal tax identification number (or Canadian business number where applicable) for each of the Debtors, are: Allied Systems Holdings, Inc. (58-0360550); Allied Automotive Group, Inc. (58-2201081); Allied Freight Broker LLC (59-2876864); Allied Systems (Canada) Company (900169283); Allied Systems, Ltd. (L.P.) (58-1710028); Axis Areta. LLC (45-5215545); Axis Canada Company (875688228); Axis Group, Inc. (58-2204628); Commercial Carriers, Inc. (38-0436930); CT Services. Inc. (382918187); Cordin Transport LLC (38-1985795); F.J. Boutell Driveaway LLC (38-0365100); GACS Incorporated (58-1944786); Logistic Systems. LLC (45-4241751); Logistic Technology, LLC (45-4242057): QAT, Inc. (592876863): RMX LLC (31-0961359); Transport Support LLC (38-2349563); and Terminal Services LLC (910847582).

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to 28 U.S.C. 1334(c) (the "Cross-Motion"). respectfully represent as follows:

In support hereof, the Petitioning Creditors

BACKGROUND
I.

All relevant background facts are set forth in the Cross-Motion2 and related

omnibus objection to the Debtors' Stay Extension Motion, Credit Bid Motion, and DIP Amendment Motion (the "Debtors' Motions"), which the Petitioning Creditors incorporate as if fully set forth herein. 2. The Cross-Motion is closely related to the relief requested in the Debtors'

Motions. A hearing on the Debtors' Motions is scheduled for November 7, 2012, at 9:30A.M. (ET).
JURISDICTION

3.

This Court has jurisdiction to consider this matter pursuant to 28 U.S.C. 157

and 1334. This is a core proceeding under 28 U.S.C. 157(b) and venue is proper in this district pursuant to 28 U.S.C. 1408 and 1409. 4. The statutory predicates for the relief requested herein are section 105(a) of the

Bankruptcy Code and Rule 9006-1 (e) of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware (the "Local Rules").
RELIEF REQUESTED

5.

By this Motion to Shorten, the Petitioning Creditors seek authority pursuant to

Bankruptcy Code section 105(a) and Local Rule 9006-1(e) to shorten the notice required for a hearing on the Cross-Motion so that the Cross-Motion may be heard at the November 7, 2012 hearing, with objections to the relief sought in the Cross-Motion due at or before the hearing.

Capitalized terms used but not defmed herein have the meanings ascribed to them in the Cross-Motion.

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BASIS FOR RELIEF

6.

As more fully set forth in the Cross-Motion, the Petitioning Creditors object to the

Debtors' attempts to stay the New York Action and restart that litigation in the Adversary Proceeding. The New York Action is a purely state law contract dispute between non-debtors and does not involve any Bankruptcy Code provisions or principles. But for the Debtors'

bankruptcy case, there is no independent basis for federal jurisdiction. Furthermore, the New York Action is already procedurally 10 months ahead of the Adversary Proceeding and Justice Ramos has scheduled a hearing on the Petitioning Creditors' fully briefs motion for summary judgment for November 19, 2012. As such, the Petitioning Creditors ask through the Omnibus Objection, that, among other things, the Court (i) decline to extend the stay to enjoin the New York Action and (ii) abstain from hearing the Adversary Proceeding. 7. The relief requested in the Cross-Motion is part and parcel of the Petitioning

Creditors' objections to the Debtors' Motions. More specifically, even if the Court found that "unusual circumstances" existed to extend the stay to the New York Action and that it also has "related to" jurisdiction to hear Debtors' claims (both of which the Petitioning Creditors vigorously dispute), the Court will necessarily have to consider whether it can, or should, hear the Adversary Proceeding based on federal abstention principles. As such, it is crucial that the Court consider the Debtors' Motions and the Omnibus Objection in the context of mandatory and permissive abstention principles. 8. This Court's Local Rule 9006-1(c) provides in part that: "[u]nless the Fed. R.

Bankr. P. or these Local Rules state otherwise, all motion papers shall be filed and served in accordance with Local Rule 2002-1(b) at least fourteen (14) days ... prior to the hearing date"

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and that "the deadline for objection(s) shall be no later than seven (7) days before the hearing date." 9. By this Motion to Shorten the Petitioning Creditors seek, pursuant to Rules 2002

and 9006(c) ofthe Federal Rules of Bankruptcy Procedure and Local Rule 9006-1(e), to shorten the notice period with respect to the Cross-Motion so that the Court may consider the CrossMotion at the hearing currently scheduled for November 7, 2012 ("November 7 Hearing"). 10. Further, Local Rule 9006-1 (c) provides that the parties may not extend an

objection deadline beyond the deadline for filing the agenda, i.e., 12:00 p.m. prevailing Eastern Time two business days before the date of the hearing, without Court approval. Because the Petitioning Creditors seek to have the Cross-Motion heard on an expedited basis, but still allow creditors and parties in interest a full and fair opportunity to review the Cross-Motion and respond, if appropriate, the Petitioning Creditors seek relief, pursuant to Local Rule 9006-1 (e), from the deadline for parties to file an objection to the Cross-Motion imposed by the Local Rules. Accordingly, the Petitioning Creditors seek to extend the deadline to allow any party to file an objection to the Cross-Motion at any time until the November 7 Hearing. 11. Because the relief requested in the Cross-Motion relates to the relief requested in

the Debtors' Motions, and because the hearing on the Debtors' Motions will take place on November 7, 2012, hearing the Cross-Motion in connection with the Debtors' Motions will promote judicial efficiency, avoid duplicative hearings, and circumvent the possibility of relitigating issues of fact and/or law to be determined in connection with the Debtors' Motions. 12. If this Motion to Shorten is granted, parties will be afforded six (6) days to object

to the relief requested therein, which is only one (1) day less than the seven (7) ordinarily

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afforded under the rules. Accordingly, the Petitioning Creditors submit that granting the relief requested herein will not materially prejudice any party. 13. Local Rule 9006-1 (e) grants this Court the authority to order that a motion be

heard on less notice than is required by the Bankruptcy Rules, and provides that the Court may rule on a motion for the same "promptly without need for a hearing." Additionally, Bankruptcy Code section 105(a) provides that the Court "may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title." Together, Local Rule 90061(e) and Bankruptcy Code section 105(a) provide ample authority for the Court to grant this Motion to Shorten. The exigencies in support such relief have been demonstrated herein.

Accordingly, the Petitioning Creditors respectfully request that the Motion to Shorten be granted at the Court's earliest convenience.

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WHEREFORE, the Petitioning Creditors respectfully request that this Court enter an order granting the relief requested herein and grant the Petitioning Creditors such other and further relief as is just and proper. Dated: November 1, 2012 Wilmington, Delaware
LANDIS RATH & COBB LLP

Adam. Landis (No: 340 Kerri K. Mumford (No. 4186) 919 Market Street, Suite 1300 Wilmington, Delaware 19801 Telephone: (302) 467-4400 Facsimile: (302) 467-4450 -and-

~iL~ ~J{~

SCHULTE ROTH & ZABEL LLP Adam C. Harris Robert J. Ward 919 Third Avenue New York, New York 10022 Telephone: (212) 756-2000 Facsimile: (212) 593-5955 Counsel to the Petitioning Creditors

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IN THE UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE

) ) ) ) ) ) )

In re: ALLIED SYSTEMS HOLDINGS, INC. et al./ Debtors.

Chapter 11 Case No. 12 -11564 (CSS) (Jointly Administered)

Ref. No. _ _ __

__________________________________ )
)

ALLIED SYSTEMS HOLDINGS, INC. Plaintiff,

v.

)
)

Adversary Proceeding No.: 12-50947 (CSS)

) )
)

AMERICAN MONEY MANAGEMENT CORP., et ) al., )

)

_________________________________ )
ORDER GRANTING PETITIONING CREDITORS' MOTION PURSUANT TO DEL. BANKR. L.R. 9006-l(e) FOR AN ORDER SHORTENING TIME FOR NOTICE OF THE HEARING TO CONSIDER PETITIONING CREDITORS' CROSS-MOTION FOR ABSTENTION PURSUANT TO 28 U.S.C. 1334(c)

Defendants.

Ref. No. _ _ __

Upon consideration of 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 Petitioning Creditors' Cross-Motion for Abstention Pursuant to 28 US. C. 1334(c) (the "Motion to
Shorten"); 2 and it appearing that due and adequate notice of the Motion to Shorten has been

The Debtors in these cases, along with the federal tax identification number (or Canadian business number where applicable) for each of the Debtors, are: Allied Systems Holdings, Inc. (58-0360550); Allied Automotive Group, Inc. (58-2201081); Allied Freight Broker LLC (59-2876864); Allied Systems (Canada) Company (900169283); Allied Systems, Ltd. (L.P.) (58-1710028); Axis Areta. LLC (45-5215545); Axis Canada Company (875688228); Axis Group, Inc. (58-2204628); Commercial Carriers, Inc. (38-0436930); CT Services. Inc. (382918187); Cordin Transport LLC (38-1985795); F.J. Boutell Driveaway LLC (38-0365100); GACS Incorporated (58-1944786); Logistic Systems. LLC (45-4241751); Logistic Technology, LLC (45-4242057): QAT, Inc. (592876863): RMX LLC (31-0961359); Transport Support LLC (38-2349563); and Terminal Services LLC (910847582). 2 Capitalized terms used but not otherwise defmed herein have the meanings ascribed to them in the Motion to Shorten.

{935.001-W0023373.}

given under the circumstances, and that no other or further notice need be given; and after due deliberation and sufficient cause appearing therefor, it is hereby: ORDERED, that the Motion to Shorten is granted; and it is further ORDERED, that the Cross-Motion shall be heard on November 7, 2012 at 9:30 A.M. {ET); and it is further ORDERED, that any objections to the relief requested in the Cross-Motion, if any, shall be filed and served and/or made at the hearing no later than November 7, 2012 at 9:30 A.M. (ET); and it is further ORDERED, that this Court shall retain jurisdiction over any and all matters arising from or related to the implementation or interpretation of this Order.

Dated: November_, 2012 Wilmington, Delaware The Honorable Christopher S. Sontchi United States Bankruptcy Judge

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