Delphi nears deal with creditors over GM support
2008-09-25 10:03:54.0
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Delphi nears deal with creditors over GM support
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.
Under the proposed changes presented in bankruptcy court
Thursday, 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.
GM is Delphi's former parent. It's 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 Delphi's creditors have objected to the company's latest
deal with GM, saying it would give the automaker too much control
over Delphi's Chapter 11 process.
Delphi operates three plants in Alabama.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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