A recent report from the Detroit Free Press says that Wilmington Trust Co., a trustee for about $2 billion in outstanding debt in Delphi Corp., is asking the parts suppliers’ bankruptcy judge to revoke its confirmation order a requisite for leaving bankruptcy protection.
The Free Press reports that Wilmington Trust claims the order may have included false information from one of Delphi's investors.
“The confirmation order was entered in January, based on a planned $2.55-billion stock purchase by investors led by hedge fund Appaloosa Management LP. In April, Appaloosa dropped out of the plan. In its own lawsuit against the hedge fund, Delphi has alleged that Appaloosa did not intend to follow through. Pointing to Delphi's allegations, Wilmington Trust, in its suit filed Tuesday, said that the confirmation order was issued with fraudulent information,” the article stated.