At an auction that concluded on Thursday, bankrupt auto transporter Allied System Holdings selected fellow auto hauler Jack Cooper Transport as the entity with the best and highest bid.
The selection of Jack Cooper’s bid sets up an approval hearing by the U.S. Bankruptcy Court on Tuesday, that if approved, sets an effective sale date of October 31.
The two companies are among the biggest auto haulers in the United States with the change in ownership reportedly giving Cooper around 4,000 tractors and trailers with business of around $1 billion annually.
Unlike the first auction, where Allied selected a bid from Black Diamond/Spectrum that drew vigorous challenges by multiple constituents, including the Teamsters Union, all major parties supported the sale to Jack Cooper.
“The Judge did the right thing in reopening the auction, there were so many holes and contingencies in the prior bid by Black Diamond/Spectrum that it clearly wasn’t in the best interests of the employees or creditors,” said Roy Gross, director of the Teamsters Carhaul Division.
Allied has filed for bankruptcy more than once in recent years.