Delphi talks may go beyond deadline |
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Thu, 25 Jan 2007 00:48
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DETROIT (AFX) - Talks between struggling auto parts supplier Delphi Corp. and its unions that are key to a critically needed capital injection could go beyond a Jan. 31 deadline as long as progress is being made, a Delphi spokesman said Wednesday.Three private equity investors -- Appaloosa Management LP, Cerberus Capital Management LP and Harbinger Capital Partners Master Fund I -- along with Merrill Lynch & Co. and UBS Securities LLC have agreed to invest $1.4 billion to $3.4 billion in a restructured Delphi.But the deal is contingent upon Delphi reaching a wage-and-benefit reduction agreement with its unions, something it has been unable to do after a year of talks.The investors and Delphi each have the right to terminate the agreement by Jan. 31 if Delphi fails to reach agreement with its unions and a parts supply pact with GM.'There is significant activity under way with regard to due diligence on the part of the plan investors, as well as continued discussions between Delphi, the unions and GM,' Delphi spokesman Lindsey Williams said in an e-mail. 'As long as sufficient progress is being made, it is likely that the parties will continue efforts to reach consensual agreements through February.'Troy-based Delphi, which is trying to emerge from Chapter 11 bankruptcy protection, won approval of the investment plan from a federal bankruptcy judge earlier this month.Delphi filed for bankruptcy protection in October 2005.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Delphi looking to GM, UAW for bailout 