Delphi may file for bankruptcy on Friday: UAW

Manufacturing News, Source : TheManufacturer.com
Published : 07 Oct 2005 18:15

Auto parts maker Delphi is considering filing for bankruptcy protection, possibly today, according to a memo sent to union members by the United Auto Workers—which would make it the largest industrial bankruptcy in the nation’s history.

The company has been working for months with automaker General Motors, Delphi’s former parent company, and the UAW to reach deals that would let it to reduce its $6 billion debt and employee pension and benefit liabilities of some $14.5 billion.

"During the last two weeks of meetings, Delphi representatives have clearly stated that regardless of what the UAW agrees to, GM must provide billions of dollars in financial support or Delphi will be forced to file Chapter 11 bankruptcy," the UAW memo said. "The speculation is that Delphi will file bankruptcy sometime during the period from October 7 through October 14, if not sooner, since there are no discussions being held between GM and Delphi."

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