UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

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In re:
Chapter 11
ALLIED SYSTEMS HOLDINGS, INC.,
Case No. 11-.._[ _ __,] ([_])
Alleged Debtor.
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In re:
Chapter 11
ALLIED SYSTEMS, LTD. (L.P.),
Case No. 11-[ _ __.] ([_j)
Alleged Debtor.
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AFFIDAVIT OF RICHARD EHRLICH ON BEHALF OF
BLACK DIAMOND CLO 2005-1 LTD. PURSUANT
TO FEDERAL RULE OF BANKRUPTCY PROCEDURE 1003
STATE OF CONNECTICUT)
) ss:
COUNTY OF FAIRFIELD )
Richard Ehrlich being duly sworn, deposes and states:
1. I make this affidavit on behalf of Black Diamond CLO 2005-1 Ltd. ("Black
Diamond"), a petitioning creditor in the above-captioned involuntary chapter 11 cases (the
"Bankruptcy Cases") filed by Black Diamond and other petitioning creditors against (i) Allied
Systems Holdings, Inc., and (ii) Allied Systems, Ltd. (L.P.) (together, the "Debtors"). I am fully
familiar with the facts set forth herein either through my own personal knowledge or through a
review of documents related to Black Diamond's claims against the Debtors. If called to testify
in connection with the Bankruptcy Cases, the following would constitute my testimony.
2. I am a Managing Director of Black Diamond Capital Management, L.L.C., which
through its affiliated entities is the investment manager for Black Diamond. Black Diamond has
its principal place of business at 1 Sound Shore Drive, Suite 200, Greenwich, Connecticut 06830.
Black Diamond is a creditor of the Debtors based upon its status as a lender under that certain
Amended and Restated First Lien Secured Super-Priority Debtor in Possession and Exit Credit
and Guaranty Agreement dated as of March 30, 2007 by and among Allied Holdings, Inc. and
Allied Systems, Ltd. (L.P.), as borrowers, certain subsidiaries of borrowers, as subsidiary
guarantors, various lenders, Goldman Sachs Credit Partners L.P., as lead arranger and
syndication agent, and The CIT Group/Business Credit, Inc., as administrative and collateral
agent (as amended, restated, modified, or supplemented from time to time, the "First Lien Credit
Agreement").
The First Lien Credit Agreement
3. Pursuant to the First Lien Credit Agreement, various lenders committed to extend
term loans, revolving loans, and synthetic letters of credit to the Debtors in the amount of
$315 million. Due to the accrual of interest and fees, the current outstanding aggregate amount
of the Obligations (as defined in the First Lien Credit Agreement) is approximately $296.4
million. A copy of the First Lien Credit Agreement will be annexed to a declaration in support
of a statement contemporaneously filed by the petitioning creditors.
4. Pursuant to the First Lien Credit Agreement, the lenders' commitments under
term loans, revolving loans, and synthetic letters of credit were evidenced by promissory notes.
The claims of Black Diamond and other petitioning creditors derive from these notes.
5. The Obligations are secured by first priority liens in substantially all of the
Debtors' assets, including, but not limited to accounts, chattel paper, general intangibles, goods,
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instruments, insurance, intellectual property, investment related property, letter of credit rights,
money, receivables, and commercial tort claims. The Obligations are guaranteed by affiliates of
the Debtors.
The Assignments
6. By virtue of the execution of an assignment and assumption agreement, Black
Diamond received an unconditional transfer and assignment of certain amounts of loans owed by
the Debtors under the First Lien Credit Agreement (the "Assigned Claims"). Redacted copies of
the assignment documentation are attached as Exhibit A.
7. The Assigned Claims were not assigned to Black Diamond for the purposes of
commencing the Bankruptcy Cases.
8. As of the date hereof, Black Diamond holds Obligations in the aggregate principal
amount of at least $4.5 million, together with all accrued and unpaid interest (including default
interest), fees and expenses calculated in accordance with the Credit Agreement.
Dated: 2012
Greenwich, Connecticut
Sworn t51 and subscribed before me
This // "' dayofMay, 2012

Notary Public
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EXHIBIT A
ASSIGNMENT AND ASSUMPTION AGREEMENT
This Assignment and ent") is dated as of the Effective Date set forth below and
is entered into by and (the "Assignor") and Black Diamond CLO 2005-1
L TO. (the "Assignee"). Capitalized terms used but not defined herein shall have the meanings given to them in the
Amended and Restated First Lien Senior Secured Super-Priority Debtor-in-Possession and Exit Credit and Guaranty
Agreement identified below (as it may be amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions
set forth in Annex I attached hereto are hereby agreed to and incorporated herein by reference and made a part of this
Assignment as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee
hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated
below, the interest in and to all of the Assignor's rights and obligations under the Credit Agreement and any other
documents or instruments delivered pursuant thereto that represents the amount and percentage interest identified below of
all of the Assignor's outstanding rights and obligations under the respective facilities identified below (including, to the extent
included in any such facilities, letters of credit, LC Deposits and swingline loans) (the "Assigned Interest"). Such sale and
assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and the Credit
Agreement, without representation or warranty by the Assignor.
1. Assignor:
2. Assignee:
3. Borrower(s):
4. Administrative Agent:
5. Credit Agreement:
Black Diamond CLO 2005- I LTD.
Allied Holdings, Inc., Allied Systems, LTD (L.P.)
The CIT Group I Business Credit, Inc., as the administrative agent under the Credit
Agreement
The $265,000,000.00 Credit Agreement dated as of May 15, 2007 among Allied
Holdings, Inc. ("Holdings"), Allied Systems, Ltd. (L.P.) ("Systems"), certain
Subsidiaries of Holdings and Systems, as Guarantors, the Lenders parties thereto,
Goldman Sachs Credit Partners L.P., as Administrative Agent, The CIT
Group/Business Credit, Inc., as Administrative Agent and Collateral Agent and the
other agents parties thereto
347264-001
6. Assigned Interest:
Aggregate Amount of
Commitment/Loans/LC
Facility Assigned
Deposits for all Lenders
Synthetic LC
USD
Commitment
Term Loan USD
Effective Date: -
7. Notice and Wire Instructions:
Notices:
Wire Instructions:
Currency: USD
Amount of Percentage Assigned of
Commitment/Loans/LC Comm itment/Loans/LC
Deposits Assigned Deposits
USD-
-lo
Notices:
Black Diamond CLO 2005- I LTD.
Fax:
Contact: Black Diamond Closers
Email:
Wire Instructions:
Currency: USD
Bank: U.S. Bank
ABA#:
Account#:
Account Name: Corporate Trust Structured Finance
FFC: Black Diamond CLO 2005- I - Acct:
1076027384
Attn:
Reference: Allied Holdings 1st Lien (5/07)
347264-001
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The terms set forth in this Assignment are hereby agreed to:
ASSIGNOR
Assignor
By:
Name:
Title:
ASSIGNEE
BLACK DIAMOND CLO 2005-1 LTD., as Assignee
By: Black Diamond CLO 2005-1 Adviser L.L.C., as lts
Collateral Manager
347264. 001
The terms set forth in this Assignment are hereby agreed to:
ASSIGNOR
Title: Closer/Agent
ASSIGNEE
BLACK DIAMOND CLO 2005-1 LTD., as Assignee
By: Black Diamond CLO 2005-1 Adviser L.L.C., as Its
Collateral Manager
By:
Name:
Title:
347264.001
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Consented to and Accepted:
THE CIT GROUP I BUSINESS CREDIT, INC., as Administrative
Agent
By:
Name; -::.). ~ t J o ~
Title: '\ff>
Consented to:
ALLIED HOLDINGS, INC.
By:
Name:
Title:
ALLIED SYSTEMS, LTD (L.P.)
By:
Name:
Title:
347264-001
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ANNEX 1
STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT
AND ASSUMPTION AGREEMENT
1. Representations and Warranties.
1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned
Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements (as defined herein),
warranties or representations made in or in connection with any Credit Document, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document delivered
pursuant thereto, other than this Assignment (herein collectively the "Credit Documents"), or any collateral thereunder, (iii)
the financial condition ofthe Company, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any
Credit Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Credit Document.
1.2 Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and to consummate the transactions contemplated hereby and to
become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit
Agreement, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement and, to the
extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit
Agreement and such other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and to purchase the Assigned Interest on the basis of which it has made such analysis
and decision, and (v) if it is a Non US Lender, attached to the Assignment is any documentation required to be delivered
by it pursuant to the terms ofthe Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it
will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at that time, continue to make its own credit decisions in taking or
not taking action under the Credit Documents, and (ii) it will perform in accordance with their terms all of the obligations
which by the terms of the Credit Documents are required to be performed by it as a Lender.
2. Payments. All payments with respect to the Assigned Interests shall be made on the Effective Date as follows:
2.1 With respect to Assigned Interests for Term Loans, unless notice to the contrary is delivered to the Lender from the
Administrative Agent, payment to the Assignor by the Assignee in respect of the Assigned Interest shall include such
compensation to the Assignor as may be agreed upon by the Assignor and the Assignee with respect to all unpaid interest
which has accrued on the Assigned Interest to but excluding the Effective Date. On and after the applicable Effective Date,
the Assignee shall be entitled to receive all interest paid or payable with respect to the Assigned Interest, whether such
interest accrued before or after the Effective Date.
2.2 With respect to Assigned Interests for Revolving Loans and LC Commitments and LC Deposits, from and
after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding
the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.
3. General Provisions. This Assignment shall be binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment may be executed in any number of counterparts, which together shall
347264-001
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constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment by telecopy shall be
effective as delivery of a manually executed counterpart ofthis Assignment. This Assignment shall be governed by, and
construed in accordance with, the internal laws of the State of New York without regard to conflict of laws principles
thereof.
347264-001
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