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Delphi working toward new GM deal

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By Thomas Gnau, Staff Writer 3:50 PM Wednesday, April 22, 2009

Delphi Corp. is working with General Motors Corp. and the U.S. Treasury on a new agreement nailing down GM’s level of support for Delphi, a company spokesman said today, April 22.

After a hedge fund, Appaloosa Management, withdrew expected support for Delphi a year ago, bankrupt Delphi has found itself relying increasingly on help from GM, its former parent and biggest customer. Meanwhile, GM itself may be approaching bankruptcy.

A deadline for an agreement with GM was last Friday, but there is a five-day “grace period” in play before lenders are expected to take any kind of action. The new deadline: This Saturday.

“Delphi, GM and the U.S. Treasury, the Automotive Task Force, continue to engage in discussions regarding the remaining elements of our restructuring, in the context of a GM restructuring,” said Lindsey Williams, a Delphi spokesman.

If the deadline isn’t reached, the prospect of liquidation looms for Delphi.

GM faces its own tough timeline for an out-of-court restructuring, with a decision on whether to seek bankruptcy protection widely expected by June. A GM spokeswoman could not be immediately reached.

Delphi has some 200 employees at its Vandalia facility. It leases part of its Kettering plant to auto parts producer Tenneco and, since seeking bankruptcy protection in 2005, has closed several plants in Moraine and Dayton.

Last month, Delphi ended health insurance and life insurance coverage for salaried retirees, saving $70 million a year.

GM spun Delphi off in April 1999. In 2008, 30 percent of Delphi’s sales were to GM.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.

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The retired union and management FORMER employees, will never generate another penny of profit for GM, its creditors, or its stockholders. Why should the stockholders - who invested their hard earned savings - be the last ones to be paid: While the retirees continue to **** on the *** of GM until death do them part? Employees are paid the stockholders dividends (and principals if need be) when GM's investments aren't sufficient.

Scabby Warker
9:49 PM, 4/23/2009

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I suggest "management" shut their mouths. I suggest "union" realizes that that after management shuts up, the carcass will be divided, depending on your agressiveness. I enjoy watching all of you acting as Darwin predicted....losers....all. Not a **** thing you can do about it but go to the new Dominicks and have garlick on your breath......

Bush
7:01 PM, 4/23/2009

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I hear the workers who will be on furlouh for 9 plus weeks will be eligible for overtime if they wake up before noon everyday.

lazyworker
6:36 PM, 4/23/2009

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Thanks, for trying to keep us current. I see by reading the responses that this problem / issue has many tentacles to support each respondent's logic. The reader is left to judge the quality/sophistication of each comment(s)?

Ben Bursey
12:06 PM, 4/23/2009

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Someone do us all a favor - STOP spreading the "Mis-Information"! It is a disservice to all of us.

Kerry
11:54 AM, 4/23/2009

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