TROY, MI -- The judge handling Delphi Corp.’s Chapter 11 case has entered an order confirming the company’s First Amended Joint Plan of Reorganization. The court ruled that Delphi had met all of the statutory requirements to confirm its plan.
"Today's confirmation represents one of the most significant events of a very complex business reorganization to be completed during a challenging time in the automotive industry," said Robert "Steve" Miller, Delphi's executive chairman. "The industry-changing accomplishments contemplated by this plan could not have been achieved without the hard work and continued focus of our employees, the support of our customers, suppliers and other stakeholders and the dedication of our professionals."
Delphi plans to emerge this quarter following the syndication and closing of approximately $6.1 billon of exit financing facilities and the satisfaction of other conditions to the effective date of the plan including completing the rights offerings provided for under the plan, closing of the investment agreement with the plan investors and consummation of the global settlement agreement with General Motors Corp.
"Delphi has substantially achieved all of the objectives that we identified in our 2006 transformation plan," said Rodney O'Neal, Delphi's CEO and president. "Since the chapter 11 cases were filed in late 2005, we have negotiated amended collective bargaining agreements with our U.S. unions resulting in more competitive U.S. operations; entered into comprehensive settlement and restructuring agreements with General Motors; made substantial progress in divesting or winding down facilities and business lines that are not core to Delphi's future plans; implemented initiatives in our organizational cost structure to achieve important cost savings and rationalize our salaried workforce to competitive levels; and obtained pension funding waivers from the Internal Revenue Service which will permit Delphi to fund its defined benefit pension plans following emergence from Chapter 11."
