Observer: Delphi emergence from Chapter 11 on hold
Delphi Corp. earlier this year met the conditions of its first amended joint plan of reorganization. But in early April, that was commenced but not completed.
Lindsey Williams, manager of corporate affairs at Delphi, says plan investors disagreed with some involvement of General Motors, but Delphi will work toward a solution. "We will work with our board of directors and statutory committees, as well as GM, to determine the next step," Williams says.
In the meantime, Delphi will continue business as it has for the last two and a half years it has been working through its Chapter 11 filing.
"Delphi continues to be well financed, well organized," Williams says. "Plants continue to operate just as they have for the last two and a half years."
Delphi has met its plan's conditions, including obtaining $6.1 billion of exit financing. According to Delphi, plan investors delivered a written notice purporting to terminate the Equity Purchase and Commitment Agreement (EPCA) and alleged breaches of the EPCA that the plan investors assert would entitle them to payment of additional compensation under the EPCA from Delphi.
— Tschanen Niederkohr
