U.S. Bankruptcy Court approves Delphi's Joint Plan of Reorganization

Jan. 1, 2020
Delphi Corp.'s First Amended Joint Plan of Reorganization recently was confirmed by the United States Bankruptcy Court for the Southern District of New York. Judge Robert D. Drain entered the order confirming the plan, and rules that Delphi had met a

Delphi Corp.'s First Amended Joint Plan of Reorganization recently was confirmed by the United States Bankruptcy Court for the Southern District of New York. Judge Robert D. Drain entered the order confirming the plan, and rules that Delphi had met all of the statutory requirement to proceed with the reorganization.

"Today's confirmation represents one of the most significant events of a very complex business reorganization to be completed during a challenging time in the automotive industry," says Robert S. Miller, Delphi's executive chairman. "The industry-changing accomplishments contemplated by this plan could not have been achieved without the hard work and continued focus of our employees, the support of our customers, suppliers and other stakeholders, and the dedication of our professionals."

Delphi plans to emerge during the current calendar quarter following the syndication and closing of approximately $6.1 billon of exit financing facilities and satisfaction of other conditions to the effective date of the plan including completing the rights offerings provided for under the plan, closing of the investment agreement with the plan investors and consummation of the global settlement agreement with General Motors Corp.

"Delphi has substantially achieved all of the objectives that we identified in our 2006 transformation plan," says Rodney O'Neal, Delphi's president and CEO. "Since the Chapter 11 cases were filed in late 2005, we have negotiated amended collective bargaining agreements with our U.S. unions resulting in more competitive U.S. operations; entered into comprehensive settlement and restructuring agreements with General Motors; made substantial progress in divesting or winding down facilities and business lines that are not core to Delphi's future plans; implemented initiatives in our organizational cost structure to achieve important cost savings and rationalize our salaried workforce to competitive levels; and obtained pension funding waivers from the Internal Revenue Service which will permit Delphi to fund its defined benefit pension plans following emergence from Chapter 11."

Delphi earlier announced broad-based stakeholder support for the plan. Eighty one percent of all voting creditors aggregated across classes voted to accept the plan. Of the total amount voted by all general unsecured creditor classes, 78 percent voted to accept the plan. More than 70 percent of the ballots cast and 70 percent of the total dollar amount voted by Delphi's senior note claims, TOPrS claims, and all other claims (including trade claims) segments each voted separately to accept the plan. One hundred percent of the ballots cast in the GM and MDL classes voted to accept the plan. Of the approximately 217,000,000 shares voted by shareholders, 78 percent voted to accept the plan. While one class each in two lower tier Delphi subsidiaries did not accept the plan, the bankruptcy court confirmed the plan over the vote of the two subsidiary dissenting classes holding that Delphi was entitled to confirm and implement the plan for several reasons including based on new value contributed by Delphi to the subsidiaries.

For more information about Delphi's plan for reorganization, visit the company's Web site.