Delphi Bankruptcy Recovery Plan Hits a "Snag"
If anyone has a spare $6.1b or so laying around, former GM division Delphi would like you to give them a call. According to the Detroit News, that's how much dinero the struggling parts maker needs to exit bankruptcy. However, because of the poor credit market, they're having trouble raising the money. If they don't get it, they'll have to rework their plan and head back to bankruptcy court– and continue paying professional and legal fees totaling around $10m per month. Delphi has few options; they're probably asking GM to foot the bill or using pension funds in return for a stake in the company. Despite GM's insistence that they're sitting on a healthy cash pile, the beleaguered automaker's hardly in a position to shell-out that kind of "investment." As far as using pension funds in concerned, Ron Gettelfinger is opposed. Even though the United Auto Workers (UAW) boss has had no discussions with GM or Delphi on the matter, Automotive News [AN, sub] reports that Gettelfinger asserted "we're not going to let Delphi rape a pension fund." You might wonder if Big Ron should have added "That's OUR job," but I couldn't possibly comment.
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