12:10 p.m.: Delphi reaches deal with GM
NEW YORK (AP) -- A lawyer for auto parts maker Delphi Corp. says the company has changed a tentative agreement on how much General Motors Corp. will contribute to help it emerge from bankruptcy.
If the agreement is finalized in a bankruptcy court hearing today, the creditors would withdraw their objection to Delphis modified reorganization plan. GM would provide $10.6 billion to help Delphi leave bankruptcy. As part of the package, GM would assume $3.4 billion in obligations for hourly workers, including thousands of Delphi Packard Electric workers in the Warren area.
In addition, Delphi shares that would have gone to GM under a $2 billion claim would go to creditors instead. The creditors could get stock worth up to 20 percent of their claims.
GMs role in the case grew by necessity when a group of equity investors pulled out of a deal to invest up to $2.55 billion in April. But Delphis creditors have objected to the companys latest deal with GM, saying it would give the automaker too much control over Delphi's Chapter 11 process.
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VoiceOfReason
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09-25-08 9:39 PM
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What other options does Delphi have... really... Other than bankruptcy (chapter 7).
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