Appaloosa Management and other investors that unexpectedly pulled out of their deal to invest $2.55 million in Delphi Corp. have issued a counterclaim against the parts manufacturer, seeking $82.5 million plus expenses.
The $2.55 billion in financing was expected to pave the way for Delphi’s emergence from bankruptcy, when in April the investors suddenly backed out. The judge handling Delphi’s Chapter 11 case recently gave the parts maker permission to file suit against the investors.
According to a report from the Wall Street Journal, the investors claim in their countersuit that they are due the $82.5 million fee because Delphi violated terms of the investment agreement earlier this year. The hedge fund said that Delphi violated their agreement by seeking additional debt financing from former parent company, General Motors. Delphi’s separation from the automaker was an explicit part of the deal, the investors claim.