US: GM eyes the Delphi problem
General Motors has said it is talking financial issues with bankrupt former parts unit Delphi as part of its own restructuring plan.
Delphi, in bankruptcy since 2005, has been a financial drag on GM at a time when the automaker is struggling to survive slumping demand caused by the global credit crisis, Reuters reported.
GM chief operating officer Fritz Henderson told the news agency GM was working with Delphi and the supplier's stakeholders for a solution within the same timeframe as its restructuring.
"We want to try to tie this together to make sure our own plan is completed," he said, adding that GM would like a permanent resolution of its Delphi situation in trying to complete its own plans.
The report noted that Delphi has been trying to complete a revised reorganisation plan since investors backed out of a US$2.55bn equity proposal to aid its planned emergence from Chapter 11 protection last April.
GM has booked more than $11bn in charges for Delphi's reorganisation, the report added.