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Judge OKs extension for Delphi

A bankruptcy judge approved a motion by Delphi Corp. to extend the auto supplier’s deadline to exclusively file its reorganization plan before creditors can weigh in with alternate proposals.
/ Source: The Associated Press

A bankruptcy judge Monday approved a motion by Delphi Corp. to extend the auto supplier’s deadline to exclusively file its reorganization plan, before creditors can weigh in with alternate proposals.

The new deadline for the company is Feb. 1, 2007, and the deadline for responses to the plan is April 2. Judge Robert Drain approved the extension, which is the company’s second and moves the filing deadline from Aug. 5.

When the company filed for bankruptcy protection last October, it had said it would emerge in early 2007.

An attorney for Delphi, John W. Butler, also said the company planned to file a motion later Monday to seek the court’s approval of a new concessions deal with the company’s second largest union, the International Union of Electronic Workers-Communications Workers of America.

The auto parts supplier announced over the weekend that it had reached an agreement with the IUE-CWA and General Motors to offer buyouts to hourly workers. The deal was similar to the one reached earlier with the United Auto Workers, the largest union representing Delphi employees.

The judge said the matter would be considered in a June 29 meeting.

Under the plan, about 8,000 hourly workers represented by the IUE-CWA are eligible to participate. Some may be offered a lump sum payment of $35,000 to retire, Delphi said, while eligible employees may decide to accept buyout packages ranging from $40,000 to $140,000.

The plan also permits the transition of up to 3,200 Delphi workers represented by the IUE-CWA to GM for retirement purposes, Delphi said.