Delphi Reorganisation
US components manufacturer Delphi Corporation, the former components arm of General Motors (GM), has filed a voluntary petition for reorganisation under chapter 11 of the US Bankruptcy Code. In the absence of any investors, Delphi plans to reorganise on its own. Delphi needs to raise US$3.75 billion and will do so through debt and equity offerings. GM has agreed to provide US$10.6 billion to support Delphi’s reorganisation, including the assumption of US$3.75 billion in pension liabilities. The plan was approved by creditors on 25 September 2008. A hearing on this plan is set for 23 October 2008 in the US Bankruptcy Court in New York.
