Deadline for Delphi pact likely to pass |
|
|
|
Published
:
Wed, 28 Feb 2007 23:43
|
DETROIT (AP) - A deadline for three private equity firms to back out of a deal to invest as much as $3.4 billion in struggling auto parts maker Delphi Corp. will pass Wednesday without an agreement, but the firms will not pull out of the deal.The firms, Appaloosa Management LP, Cerberus Capital Management LP and Harbinger Capital Partners Master Fund I, had set Wednesday as the deadline for them to back out if no agreement could be reached with Delphi's labor unions on wages, benefits and other issues.While there is no agreement, the firms and Delphi have decided to amend the investment agreement so it can be terminated with 14 days' notice.Delphi and the equity firms also agreed not to terminate the deal before March 15, Delphi said in a statement.Several parties involved in the bargaining, which includes General Motors Corp., Delphi's former owner, said the talks are continuing.'They are ongoing and we expect them to be ongoing, and we are just going to take it day by day,' said Lauren Asplen, spokeswoman for the International Union of Electronic Workers-Communications Workers of America.The equity firms, along with Merrill Lynch & Co. and UBS Securities LLC, have agreed to invest $1.4 billion to $3.4 billion in a restructured Delphi to help it emerge from Chapter 11 bankruptcy protection. But the investment was contingent upon Delphi reaching agreements with its unions and GM by Wednesday or the investors had the option to end the deal.A party close to the talks who requested anonymity because of their sensitive nature said the equity firms plan to stick with the Delphi investment, but would be wary of the talks bumping into the United Auto Workers union's national contract talks with the Detroit Three automakers this summer.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
|
|
|
|
Print this Story
Delphi talks may go beyond deadline 