Ryder, Allied Holdings settle litigation

Ryder, Allied Holdings settle litigation    Allied Holdings Inc., parent company of subsidiaries that provide logistics and transportation services to the automotive industry, said Monday it has settled “all outstanding litigation” with Ryder System Inc., a Miami-based provider of logistics and transportation management services.
   The litigation arose in connection with Allied Holdings’ 1997 acquisition of Ryder Automotive Carrier Services Inc. and RC Management Corp. from Ryder System.
   Under terms of the settlement, Ryder System has paid Allied Holdings approximately $1.4 million, and Ryder’s insurance carrier paid Allied approximately $1.6 million.
   “The payment from Ryder’s insurance carrier represents a reimbursement for money paid by Allied Holdings in excess of the self-insured retention for compensation and liability claims assumed in the acquisition of Ryder’s Automotive Carrier Group,” Allied Holdings said in a statement.
   As part of the agreed-upon settlement, Allied Holdings has issued a letter of credit for approximately $3.5 million in favor of Ryder System, and has agreed to increase the letter of credit by $1 million each quarter of the year, starting in the fourth quarter of 2003 through the third quarter of 2005.
   The letter of credit may only be drawn by Ryder System if Allied Holdings fails to pay workers’ compensation and liability claims assumed by Allied in acquiring the carrier group.