Delphi Files for Bankruptcy

[BeatleBoot]

Delphi files for bankruptcy

http://www.freep.com/news/latestnews/pm6555_20051008.htm

Delphi Corp., the nation’s largest automotive parts supplier and an employer of 14,700 people in Michigan, declared Chapter 11 bankruptcy Saturday after months of negotiations with General Motors Corp. and the UAW failed to produce a deal to stop the financially strapped company from bleeding money.

<snip>

Delphi’s bankruptcy is one of the largest U.S. history in terms of asset size. It surpasses that of Kmart Corp., which declared bankruptcy in 2002, listing $16.3 billion in assets. Telecom company Worldcom Inc., with assets of $103.9 billion, holds the record for the largest corporate bankruptcy in U.S. history. It declared bankruptcy in 2002.

<snip>

On Thursday, several UAW locals issued flyers to members that said Delphi was seeking pay cuts of as much as 63%, plus sharp increases in worker-paid health care costs, the right to close plants and other major concessions.

Current and retired Delphi workers will have to wait to see what happens to their pension plan, which Delphi could terminate. If that happened, the federal Pension Benefit Guaranty Corp. would take over
Delphi's pension obligations, but payments to many would be cut in half.

<more at link>

[Blue_Tires]

1. this is a shame

there will be big reprocussions in the auto industry because of this---the relationship between automakers and suppliers was already on life support

[JohnnyRingo]

2. They waited until Saturday ...beyond the expected Friday filing date.

On Friday 10 times the usual ammount of Delphi stock was traded.

It's obvious that the high end investors were given a heads up to cut their losses on Friday and unload the shares. Had DHP filed on Friday as expected, the execs and their buddies would have lost much, much, more.

Insider trading in it's finest hour.

[cassiepriam]

8. The top execs sold their stock this summer and earlier....

they has plenty of notice. As usual.

[cassiepriam]

11. I assume also the did not want the employees up in arms on Friday.

They are pissed to say the least.

[Mr Rabble]

3. This is really, really bad news. This is a teir 1 supplier to GM.

[ellenfl]

4. one of today's news shows (or my local paper) mentioned that

the company is being looked at for increasing top management's retirement $ immediately prior to filing for bankruptcy.

hopefully this investigation will come to something.

ellen fl

[Deja Q]

5. The avalanche continues. Expect more companies to declare the big B,

and retired employees lose their pensions because of these microcephalic apostates.

[pro_blue_guy]

7. There goes my dad's pension....

[cassiepriam]

10. corporate creed continues. What will historians say about this period?

[fortyfeetunder]

6. Hmmm, it's all about labor costs, eh?

Can anyone clue me in on what the Delphi execs make? Are they going to take some of the hurt they want to leverage on their workers?

[cassiepriam]

9. It was about mismanagement and corruption. Charges will filed against

them in MI last week for cooking the books. There is lots of
missing money.

[fortyfeetunder]

13. Oh-ho!

I'll be looking forward to reading about that..
:sarcasm: just love those mismanagers!

[Bozita]

12. "Staggering Blow" - Delphi bankruptcy - 11 article flood in Detroit News

The entire front page is nothing but Delphi. None of it is good news.

Each item below the link is an article:
http://www.detnews.com/index.htm

 Delphi's bankruptcy ominous sign for fading auto indus
try
 
Daniel Howes: Watershed moment sealed with call

 Shell-shocked workers fear for future

Q&A: What this means for Michigan

 Delphi CEO 'Steve' Miller has built a career on corporate rescue

Workers' pension plan at risk

Move could unhinge suppliers
GM depends on smooth reorganization | UAW's future: Givebacks or else

 GM comments | UAW comments | Timeline

Gov. Granholm's statement

 Delphi improved severance pay for senior executives as restructuring loomed

 Delphi workers: In light of the bankruptcy filing by Delphi, do you feel that you still have a future with the company?