Delphi Announces Formal Termination of Prior Plan Framework Agreements
Company expects to approve revised investment and reorganization framework in July 2007 and emerge from Chapter 11 reorganization by year-end 2007
Company updates status of settlement discussions with remaining U.S. labor unions and GM following ratification of UAW-Delphi-GM Memorandum of Understanding.
TROY, Mich. -- Delphi Corp. (OTC:DPHIQ) confirmed today that it formally terminated the Equity Purchase and Commitment Agreement and related Plan Framework Support Agreement it entered into in December 2006 with Cerberus Capital Management, L.P. and other plan investors. The company had announced on April 19, 2007 that it did not expect that Cerberus would continue as a plan investor. Delphi expects to enter into new framework agreements with plan investors later this month. A Delphi Board of Directors meeting is scheduled on July 16, 2007 to consider such matters.
These developments are not expected to prevent Delphi from filing its plan of reorganization and related documents with the Bankruptcy Court prior to the current expiration of the company’s exclusivity period or emergence from Chapter 11 reorganization this year.
On June 29, Delphi filed a motion seeking Bankruptcy Court approval on July 19, 2007 of a ratified UAW-Delphi-GM agreement. Delphi is currently engaged in settlement discussions with its second and third largest U.S. labor unions and is working to conclude discussions with those unions as well as three smaller unions as soon as possible.
The company also confirmed that its discussions with GM on a comprehensive settlement agreement had entered the documentation phase and that it expected that a settlement with GM would be incorporated into the company’s plan of reorganization rather than filed with the Bankruptcy Court for separate approval.
Consistent with its prior practice, Delphi does not intend to comment further regarding its discussions with GM or its unions while those discussions are ongoing. Delphi cautioned that nothing in Court or regulatory filings made by the company or the company’s public disclosures (including this press release) shall be deemed a solicitation to accept or reject a plan in contravention of the Bankruptcy Code or an offer to sell or a solicitation of an offer to buy any securities of the company.
More information on Delphi’s U.S. restructuring and access to court documents is available at www.delphidocket.com. For more information about Delphi and its operating subsidiaries, visit Delphi’s website at www.delphi.com.
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