909950--5/24/2007--ALLIED_HOLDINGS

related topics

{debt, indebtedness, cash}

{competitive, industry, competition}

{customer, product, revenue}

{gas, price, oil}

{control, financial, internal}

{cost, operation, labor}

{loss, insurance, financial}

{stock, price, share}

{personnel, key, retain}

{condition, economic, financial}

{operation, international, foreign}

We have a significant amount of debt and substantially all our assets are pledged as collateral for debt obligations, which could limit our operational flexibility and customer relationships or otherwise adversely affect our financial condition. The terms of the New DIP Facility place restrictions on us, which create risks of default and limits our flexibility. We will be required to make significant capital expenditures on our Rigs in the coming years and we may not be able to maintain our current level of terminal operations or customer relationships. If we are not able to renegotiate our union contracts on terms favorable to us as they expire, or if work stoppages or other labor disruptions occur during such negotiations, it could have a material adverse effect on our operations. Rising interest rates could adversely affect our cash flow and interest expense. A shortage of fuel or higher fuel prices resulting from fuel shortages or other factors could have a detrimental effect on the automotive industry or the automotive transportation industry and could materially and adversely affect our operations. A further decline in the automotive industry could have a material adverse effect on our operations. The internal strategies of our largest customers could have a material effect on our performance. Losses may exceed our insurance coverage or reserves. We have a history of losses and may not be able to improve our performance to achieve profitability. Our restricted cash, cash equivalents and other time deposits are not available for use in our operations even if they were needed to fund our operations. If we do not maintain our relationships with major customers or these relationships are terminated, reduced or redesigned, our operations could be materially and adversely affected. Competition in the automotive transportation industry could result in a loss of our market share or a reduction in our rates, which could have a material adverse effect on our operations. Our common stock is not currently listed on a national securities exchange, which could make it more difficult for investors to liquidate their shares, result in a decline in the stock price and make it difficult for us to raise additional capital. Adverse changes in the foreign business climate, primarily in Canada, could adversely affect our operations. Major changes in key personnel on whom we depend could adversely affect our operations. The loss of our Teamster drivers and mechanics could adversely affect our operations. We have previously had material weaknesses in our internal control over financial reporting, and any unidentified material weaknesses could cause us to fail to meet our SEC and other reporting requirements.

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909950--5/24/2007--ALLIED_HOLDINGS_INC