DISTRESS WATCH: CDK’s Legal Woes Increase US Troubled Debt Pile

A $4 billion term loan issued by CDK Global slipped into distressed territory last week after a federal judge ruled that a rival’s lawsuit could move ahead against the maker of software for auto dealers.

Tekion sued CDK for alleged antritrust violations and after briefings and oral arguments, the court denied CDK’s motion to dismiss the suit.

CDK sells one of the largest dealership management systems in the US market. The Brookfield-backed company in January agreed to pay $630 million to settle other antritrust claims of inflated pricing brought by a different firm.

CDK, which has roughly $5.5 billion ...